Correlation Between Flux Power and Sunrise New
Can any of the company-specific risk be diversified away by investing in both Flux Power and Sunrise New 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 Flux Power and Sunrise New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flux Power Holdings and Sunrise New Energy, you can compare the effects of market volatilities on Flux Power and Sunrise New 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 Flux Power with a short position of Sunrise New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flux Power and Sunrise New.
Diversification Opportunities for Flux Power and Sunrise New
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Flux and Sunrise is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Flux Power Holdings and Sunrise New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunrise New Energy and Flux Power 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 Flux Power Holdings are associated (or correlated) with Sunrise New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunrise New Energy has no effect on the direction of Flux Power i.e., Flux Power and Sunrise New go up and down completely randomly.
Pair Corralation between Flux Power and Sunrise New
Given the investment horizon of 90 days Flux Power Holdings is expected to generate 0.94 times more return on investment than Sunrise New. However, Flux Power Holdings is 1.06 times less risky than Sunrise New. It trades about -0.01 of its potential returns per unit of risk. Sunrise New Energy is currently generating about -0.04 per unit of risk. If you would invest 526.00 in Flux Power Holdings on August 23, 2024 and sell it today you would lose (289.00) from holding Flux Power Holdings or give up 54.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Flux Power Holdings vs. Sunrise New Energy
Performance |
| Timeline |
| Flux Power Holdings |
| Sunrise New Energy |
Flux Power and Sunrise New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flux Power and Sunrise New
The main advantage of trading using opposite Flux Power and Sunrise New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flux Power position performs unexpectedly, Sunrise New 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 Sunrise New will offset losses from the drop in Sunrise New's long position.| Flux Power vs. Espey Mfg Electronics | Flux Power vs. NeoVolta Warrant | Flux Power vs. Kimball Electronics | Flux Power vs. Hayward Holdings |
| Sunrise New vs. Espey Mfg Electronics | Sunrise New vs. NeoVolta Warrant | Sunrise New vs. Kimball Electronics | Sunrise New 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 Stocks Directory module to find actively traded stocks across global markets.
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