Correlation Between Suny Cellular and Phinergy

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Can any of the company-specific risk be diversified away by investing in both Suny Cellular and Phinergy 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 Suny Cellular and Phinergy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suny Cellular Communication and Phinergy, you can compare the effects of market volatilities on Suny Cellular and Phinergy 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 Suny Cellular with a short position of Phinergy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suny Cellular and Phinergy.

Diversification Opportunities for Suny Cellular and Phinergy

-0.18
  Correlation Coefficient

Good diversification

The 3 months correlation between Suny and Phinergy is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Suny Cellular Communication and Phinergy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phinergy and Suny Cellular 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 Suny Cellular Communication are associated (or correlated) with Phinergy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phinergy has no effect on the direction of Suny Cellular i.e., Suny Cellular and Phinergy go up and down completely randomly.

Pair Corralation between Suny Cellular and Phinergy

Assuming the 90 days trading horizon Suny Cellular Communication is expected to generate 0.86 times more return on investment than Phinergy. However, Suny Cellular Communication is 1.16 times less risky than Phinergy. It trades about 0.22 of its potential returns per unit of risk. Phinergy is currently generating about -0.1 per unit of risk. If you would invest  10,114  in Suny Cellular Communication on September 5, 2024 and sell it today you would earn a total of  1,696  from holding Suny Cellular Communication or generate 16.77% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Suny Cellular Communication  vs.  Phinergy

 Performance 
       Timeline  
Suny Cellular Commun 

Risk-Adjusted Performance

19 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Suny Cellular Communication are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Suny Cellular sustained solid returns over the last few months and may actually be approaching a breakup point.
Phinergy 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Phinergy are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Phinergy sustained solid returns over the last few months and may actually be approaching a breakup point.

Suny Cellular and Phinergy Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Suny Cellular and Phinergy

The main advantage of trading using opposite Suny Cellular and Phinergy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suny Cellular position performs unexpectedly, Phinergy 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 Phinergy will offset losses from the drop in Phinergy's long position.
The idea behind Suny Cellular Communication and Phinergy pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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