Correlation Between Sunrise New and Atkore International
Can any of the company-specific risk be diversified away by investing in both Sunrise New and Atkore International 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 Atkore International 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 Atkore International Group, you can compare the effects of market volatilities on Sunrise New and Atkore International 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 Atkore International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrise New and Atkore International.
Diversification Opportunities for Sunrise New and Atkore International
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunrise and Atkore is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Sunrise New Energy and Atkore International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atkore International 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 Atkore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atkore International has no effect on the direction of Sunrise New i.e., Sunrise New and Atkore International go up and down completely randomly.
Pair Corralation between Sunrise New and Atkore International
Given the investment horizon of 90 days Sunrise New Energy is expected to generate 0.99 times more return on investment than Atkore International. However, Sunrise New Energy is 1.01 times less risky than Atkore International. It trades about 0.09 of its potential returns per unit of risk. Atkore International Group is currently generating about -0.2 per unit of risk. If you would invest 90.00 in Sunrise New Energy on November 29, 2024 and sell it today you would earn a total of 6.00 from holding Sunrise New Energy or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrise New Energy vs. Atkore International Group
Performance |
| Timeline |
| Sunrise New Energy |
| Atkore International |
Sunrise New and Atkore International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrise New and Atkore International
The main advantage of trading using opposite Sunrise New and Atkore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrise New position performs unexpectedly, Atkore International 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 Atkore International will offset losses from the drop in Atkore International's long position.| Sunrise New vs. Espey Mfg Electronics | Sunrise New vs. NeoVolta Warrant | Sunrise New vs. Kimball Electronics | Sunrise New vs. Hayward Holdings |
| Atkore International vs. Hubbell | Atkore International vs. Enersys | Atkore International vs. Advanced Energy Industries | Atkore International vs. nVent Electric PLC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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