Correlation Between Sunrise New and ADS TEC
Can any of the company-specific risk be diversified away by investing in both Sunrise New and ADS TEC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sunrise New and ADS TEC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrise New Energy and ADS TEC ENERGY PLC, you can compare the effects of market volatilities on Sunrise New and ADS TEC and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sunrise New with a short position of ADS TEC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrise New and ADS TEC.
Diversification Opportunities for Sunrise New and ADS TEC
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunrise and ADS is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sunrise New Energy and ADS TEC ENERGY PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADS TEC ENERGY and Sunrise New is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sunrise New Energy are associated (or correlated) with ADS TEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADS TEC ENERGY has no effect on the direction of Sunrise New i.e., Sunrise New and ADS TEC go up and down completely randomly.
Pair Corralation between Sunrise New and ADS TEC
Given the investment horizon of 90 days Sunrise New Energy is expected to under-perform the ADS TEC. In addition to that, Sunrise New is 1.05 times more volatile than ADS TEC ENERGY PLC. It trades about -0.16 of its total potential returns per unit of risk. ADS TEC ENERGY PLC is currently generating about -0.09 per unit of volatility. If you would invest 350.00 in ADS TEC ENERGY PLC on August 27, 2024 and sell it today you would lose (29.00) from holding ADS TEC ENERGY PLC or give up 8.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrise New Energy vs. ADS TEC ENERGY PLC
Performance |
| Timeline |
| Sunrise New Energy |
| ADS TEC ENERGY |
Sunrise New and ADS TEC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrise New and ADS TEC
The main advantage of trading using opposite Sunrise New and ADS TEC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrise New position performs unexpectedly, ADS TEC can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ADS TEC will offset losses from the drop in ADS TEC's long position.| Sunrise New vs. FREYR Battery SA | Sunrise New vs. Microvast Holdings | Sunrise New vs. Chardan NexTech Acquisition | Sunrise New vs. Solid Power |
| ADS TEC vs. FREYR Battery SA | ADS TEC vs. Microvast Holdings | ADS TEC vs. Chardan NexTech Acquisition | ADS TEC vs. Solid Power |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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