Correlation Between Sunrise New and Chardan NexTech
Can any of the company-specific risk be diversified away by investing in both Sunrise New and Chardan NexTech 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 Chardan NexTech 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 Chardan NexTech Acquisition, you can compare the effects of market volatilities on Sunrise New and Chardan NexTech 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 Chardan NexTech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrise New and Chardan NexTech.
Diversification Opportunities for Sunrise New and Chardan NexTech
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunrise and Chardan is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sunrise New Energy and Chardan NexTech Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chardan NexTech Acqu 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 Chardan NexTech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chardan NexTech Acqu has no effect on the direction of Sunrise New i.e., Sunrise New and Chardan NexTech go up and down completely randomly.
Pair Corralation between Sunrise New and Chardan NexTech
Given the investment horizon of 90 days Sunrise New Energy is expected to generate 0.54 times more return on investment than Chardan NexTech. However, Sunrise New Energy is 1.85 times less risky than Chardan NexTech. It trades about 0.03 of its potential returns per unit of risk. Chardan NexTech Acquisition is currently generating about -0.21 per unit of risk. If you would invest 88.00 in Sunrise New Energy on November 4, 2024 and sell it today you would earn a total of 1.00 from holding Sunrise New Energy or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrise New Energy vs. Chardan NexTech Acquisition
Performance |
| Timeline |
| Sunrise New Energy |
| Chardan NexTech Acqu |
Sunrise New and Chardan NexTech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrise New and Chardan NexTech
The main advantage of trading using opposite Sunrise New and Chardan NexTech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrise New position performs unexpectedly, Chardan NexTech 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 Chardan NexTech will offset losses from the drop in Chardan NexTech's long position.| Sunrise New vs. Espey Mfg Electronics | Sunrise New vs. NeoVolta Warrant | Sunrise New vs. Kimball Electronics | Sunrise New vs. Hayward Holdings |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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