Correlation Between GALENA MINING and Sunny Optical
Can any of the company-specific risk be diversified away by investing in both GALENA MINING and Sunny Optical 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 GALENA MINING and Sunny Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GALENA MINING LTD and Sunny Optical Technology, you can compare the effects of market volatilities on GALENA MINING and Sunny Optical 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 GALENA MINING with a short position of Sunny Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of GALENA MINING and Sunny Optical.
Diversification Opportunities for GALENA MINING and Sunny Optical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GALENA and Sunny is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GALENA MINING LTD and Sunny Optical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Optical Technology and GALENA MINING 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 GALENA MINING LTD are associated (or correlated) with Sunny Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Optical Technology has no effect on the direction of GALENA MINING i.e., GALENA MINING and Sunny Optical go up and down completely randomly.
Pair Corralation between GALENA MINING and Sunny Optical
If you would invest 570.00 in Sunny Optical Technology on September 23, 2024 and sell it today you would earn a total of 300.00 from holding Sunny Optical Technology or generate 52.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
GALENA MINING LTD vs. Sunny Optical Technology
Performance |
| Timeline |
| GALENA MINING LTD |
| Sunny Optical Technology |
GALENA MINING and Sunny Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GALENA MINING and Sunny Optical
The main advantage of trading using opposite GALENA MINING and Sunny Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GALENA MINING position performs unexpectedly, Sunny Optical 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 Sunny Optical will offset losses from the drop in Sunny Optical's long position.| GALENA MINING vs. LG Display Co | GALENA MINING vs. SPORT LISBOA E | GALENA MINING vs. Transport International Holdings | GALENA MINING vs. JD SPORTS FASH |
| Sunny Optical vs. Amphenol | Sunny Optical vs. Hon Hai Precision | Sunny Optical vs. Samsung SDI Co | Sunny Optical vs. Murata Manufacturing Co |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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