Correlation Between Sunny Optical and Taiyo Yuden
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Taiyo Yuden 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 Taiyo Yuden 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 Taiyo Yuden Co, you can compare the effects of market volatilities on Sunny Optical and Taiyo Yuden 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 Taiyo Yuden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Taiyo Yuden.
Diversification Opportunities for Sunny Optical and Taiyo Yuden
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunny and Taiyo is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Taiyo Yuden Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiyo Yuden 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 Taiyo Yuden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiyo Yuden has no effect on the direction of Sunny Optical i.e., Sunny Optical and Taiyo Yuden go up and down completely randomly.
Pair Corralation between Sunny Optical and Taiyo Yuden
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 0.99 times more return on investment than Taiyo Yuden. However, Sunny Optical Technology is 1.02 times less risky than Taiyo Yuden. It trades about 0.16 of its potential returns per unit of risk. Taiyo Yuden Co is currently generating about -0.09 per unit of risk. If you would invest 6,882 in Sunny Optical Technology on November 6, 2024 and sell it today you would earn a total of 2,471 from holding Sunny Optical Technology or generate 35.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Sunny Optical Technology vs. Taiyo Yuden Co
Performance |
| Timeline |
| Sunny Optical Technology |
| Taiyo Yuden |
Sunny Optical and Taiyo Yuden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Taiyo Yuden
The main advantage of trading using opposite Sunny Optical and Taiyo Yuden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Taiyo Yuden 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 Taiyo Yuden will offset losses from the drop in Taiyo Yuden's long position.| Sunny Optical vs. Fabrinet | Sunny Optical vs. Flex | Sunny Optical vs. Sanmina | Sunny Optical vs. Plexus Corp |
| Taiyo Yuden vs. LSI Industries | Taiyo Yuden vs. TTM Technologies | Taiyo Yuden vs. MicroCloud Hologram | Taiyo Yuden vs. KULR Technology Group |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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