Correlation Between Sunrise New and Nxu
Can any of the company-specific risk be diversified away by investing in both Sunrise New and Nxu 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 Nxu 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 Nxu Inc, you can compare the effects of market volatilities on Sunrise New and Nxu 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 Nxu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrise New and Nxu.
Diversification Opportunities for Sunrise New and Nxu
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunrise and Nxu is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sunrise New Energy and Nxu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nxu Inc 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 Nxu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nxu Inc has no effect on the direction of Sunrise New i.e., Sunrise New and Nxu go up and down completely randomly.
Pair Corralation between Sunrise New and Nxu
Given the investment horizon of 90 days Sunrise New Energy is expected to generate 0.35 times more return on investment than Nxu. However, Sunrise New Energy is 2.82 times less risky than Nxu. It trades about -0.16 of its potential returns per unit of risk. Nxu Inc is currently generating about -0.2 per unit of risk. If you would invest 99.00 in Sunrise New Energy on August 27, 2024 and sell it today you would lose (14.00) from holding Sunrise New Energy or give up 14.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrise New Energy vs. Nxu Inc
Performance |
| Timeline |
| Sunrise New Energy |
| Nxu Inc |
Sunrise New and Nxu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrise New and Nxu
The main advantage of trading using opposite Sunrise New and Nxu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrise New position performs unexpectedly, Nxu 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 Nxu will offset losses from the drop in Nxu'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 |
| Nxu vs. Chardan NexTech Acquisition | Nxu vs. Polar Power | Nxu vs. Eos Energy Enterprises | Nxu vs. Sunrise New Energy |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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