Correlation Between Lighting Science and Sunrise New
Can any of the company-specific risk be diversified away by investing in both Lighting Science 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 Lighting Science and Sunrise New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lighting Science Group and Sunrise New Energy, you can compare the effects of market volatilities on Lighting Science 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 Lighting Science with a short position of Sunrise New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lighting Science and Sunrise New.
Diversification Opportunities for Lighting Science and Sunrise New
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lighting and Sunrise is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Lighting Science Group 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 Lighting Science 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 Lighting Science Group 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 Lighting Science i.e., Lighting Science and Sunrise New go up and down completely randomly.
Pair Corralation between Lighting Science and Sunrise New
If you would invest (100.00) in Lighting Science Group on August 30, 2024 and sell it today you would earn a total of 100.00 from holding Lighting Science Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lighting Science Group vs. Sunrise New Energy
Performance |
| Timeline |
| Lighting Science |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sunrise New Energy |
Lighting Science and Sunrise New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lighting Science and Sunrise New
The main advantage of trading using opposite Lighting Science and Sunrise New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lighting Science 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.| Lighting Science vs. Polar Power | Lighting Science vs. CBAK Energy Technology | Lighting Science vs. Ocean Power Technologies | Lighting Science vs. Enersys |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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