Correlation Between Meyer Burger and SunHydrogen
Can any of the company-specific risk be diversified away by investing in both Meyer Burger and SunHydrogen 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 Meyer Burger and SunHydrogen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meyer Burger Technology and SunHydrogen, you can compare the effects of market volatilities on Meyer Burger and SunHydrogen 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 Meyer Burger with a short position of SunHydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meyer Burger and SunHydrogen.
Diversification Opportunities for Meyer Burger and SunHydrogen
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Meyer and SunHydrogen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Meyer Burger Technology and SunHydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunHydrogen and Meyer Burger 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 Meyer Burger Technology are associated (or correlated) with SunHydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunHydrogen has no effect on the direction of Meyer Burger i.e., Meyer Burger and SunHydrogen go up and down completely randomly.
Pair Corralation between Meyer Burger and SunHydrogen
Assuming the 90 days horizon Meyer Burger Technology is expected to generate 7.17 times more return on investment than SunHydrogen. However, Meyer Burger is 7.17 times more volatile than SunHydrogen. It trades about 0.23 of its potential returns per unit of risk. SunHydrogen is currently generating about 0.16 per unit of risk. If you would invest 107.00 in Meyer Burger Technology on September 13, 2024 and sell it today you would earn a total of 131.00 from holding Meyer Burger Technology or generate 122.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Meyer Burger Technology vs. SunHydrogen
Performance |
| Timeline |
| Meyer Burger Technology |
| SunHydrogen |
Meyer Burger and SunHydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meyer Burger and SunHydrogen
The main advantage of trading using opposite Meyer Burger and SunHydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meyer Burger position performs unexpectedly, SunHydrogen 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 SunHydrogen will offset losses from the drop in SunHydrogen's long position.| Meyer Burger vs. NuRAN Wireless | Meyer Burger vs. JBG SMITH Properties | Meyer Burger vs. Tower One Wireless | Meyer Burger vs. Merit Medical Systems |
| SunHydrogen vs. Enerkon Solar International | SunHydrogen vs. Ascent Solar Technologies, | SunHydrogen vs. Solar Integrated Roofing | SunHydrogen vs. mPhase Technologies |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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