Correlation Between 360 Finance and Sunlight Financial
Can any of the company-specific risk be diversified away by investing in both 360 Finance and Sunlight Financial 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 360 Finance and Sunlight Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 360 Finance and Sunlight Financial Holdings, you can compare the effects of market volatilities on 360 Finance and Sunlight Financial 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 360 Finance with a short position of Sunlight Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Finance and Sunlight Financial.
Diversification Opportunities for 360 Finance and Sunlight Financial
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 360 and Sunlight is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding 360 Finance and Sunlight Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunlight Financial and 360 Finance 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 360 Finance are associated (or correlated) with Sunlight Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunlight Financial has no effect on the direction of 360 Finance i.e., 360 Finance and Sunlight Financial go up and down completely randomly.
Pair Corralation between 360 Finance and Sunlight Financial
If you would invest 47.00 in Sunlight Financial Holdings on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Sunlight Financial Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
360 Finance vs. Sunlight Financial Holdings
Performance |
| Timeline |
| 360 Finance |
| Sunlight Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
360 Finance and Sunlight Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 360 Finance and Sunlight Financial
The main advantage of trading using opposite 360 Finance and Sunlight Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Finance position performs unexpectedly, Sunlight Financial 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 Sunlight Financial will offset losses from the drop in Sunlight Financial's long position.| 360 Finance vs. SLM Corp | 360 Finance vs. Orix Corp Ads | 360 Finance vs. FirstCash | 360 Finance vs. Medallion Financial Corp |
| Sunlight Financial vs. X Financial Class | Sunlight Financial vs. LM Funding America | Sunlight Financial vs. Nisun International Enterprise | Sunlight Financial vs. Sentage 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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