Correlation Between Sunrise New and Flux Power
Can any of the company-specific risk be diversified away by investing in both Sunrise New and Flux Power 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 Flux Power 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 Flux Power Holdings, you can compare the effects of market volatilities on Sunrise New and Flux Power 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 Flux Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrise New and Flux Power.
Diversification Opportunities for Sunrise New and Flux Power
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sunrise and Flux is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sunrise New Energy and Flux Power Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flux Power Holdings 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 Flux Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flux Power Holdings has no effect on the direction of Sunrise New i.e., Sunrise New and Flux Power go up and down completely randomly.
Pair Corralation between Sunrise New and Flux Power
Given the investment horizon of 90 days Sunrise New Energy is expected to generate 1.2 times more return on investment than Flux Power. However, Sunrise New is 1.2 times more volatile than Flux Power Holdings. It trades about 0.21 of its potential returns per unit of risk. Flux Power Holdings is currently generating about -0.13 per unit of risk. If you would invest 86.00 in Sunrise New Energy on November 18, 2024 and sell it today you would earn a total of 14.00 from holding Sunrise New Energy or generate 16.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrise New Energy vs. Flux Power Holdings
Performance |
| Timeline |
| Sunrise New Energy |
| Flux Power Holdings |
Sunrise New and Flux Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrise New and Flux Power
The main advantage of trading using opposite Sunrise New and Flux Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrise New position performs unexpectedly, Flux Power 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 Flux Power will offset losses from the drop in Flux Power's long position.| Sunrise New vs. Espey Mfg Electronics | Sunrise New vs. NeoVolta Warrant | Sunrise New vs. Kimball Electronics | Sunrise New vs. Hayward Holdings |
| Flux Power vs. Espey Mfg Electronics | Flux Power vs. NeoVolta Warrant | Flux Power vs. Kimball Electronics | Flux Power vs. Hayward Holdings |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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