Correlation Between Sunny Optical and Bitmine Immersion
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Bitmine Immersion 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 Sunny Optical and Bitmine Immersion into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunny Optical Technology and Bitmine Immersion Technologies, you can compare the effects of market volatilities on Sunny Optical and Bitmine Immersion 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 Sunny Optical with a short position of Bitmine Immersion. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Bitmine Immersion.
Diversification Opportunities for Sunny Optical and Bitmine Immersion
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and Bitmine is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Bitmine Immersion Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitmine Immersion and Sunny Optical 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 Sunny Optical Technology are associated (or correlated) with Bitmine Immersion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitmine Immersion has no effect on the direction of Sunny Optical i.e., Sunny Optical and Bitmine Immersion go up and down completely randomly.
Pair Corralation between Sunny Optical and Bitmine Immersion
Assuming the 90 days horizon Sunny Optical is expected to generate 4.67 times less return on investment than Bitmine Immersion. But when comparing it to its historical volatility, Sunny Optical Technology is 4.8 times less risky than Bitmine Immersion. It trades about 0.2 of its potential returns per unit of risk. Bitmine Immersion Technologies is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Bitmine Immersion Technologies on August 27, 2024 and sell it today you would earn a total of 11.00 from holding Bitmine Immersion Technologies or generate 57.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. Bitmine Immersion Technologies
Performance |
| Timeline |
| Sunny Optical Technology |
| Bitmine Immersion |
Sunny Optical and Bitmine Immersion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Bitmine Immersion
The main advantage of trading using opposite Sunny Optical and Bitmine Immersion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Bitmine Immersion 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 Bitmine Immersion will offset losses from the drop in Bitmine Immersion's long position.| Sunny Optical vs. LGL Group | Sunny Optical vs. Data IO | Sunny Optical vs. Sanmina | Sunny Optical vs. Plexus Corp |
| Bitmine Immersion vs. LGL Group | Bitmine Immersion vs. Data IO | Bitmine Immersion vs. Sanmina | Bitmine Immersion vs. Plexus Corp |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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