Correlation Between Sunlight Financial and Nisun International
Can any of the company-specific risk be diversified away by investing in both Sunlight Financial and Nisun International 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 Sunlight Financial and Nisun International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunlight Financial Holdings and Nisun International Enterprise, you can compare the effects of market volatilities on Sunlight Financial and Nisun International 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 Sunlight Financial with a short position of Nisun International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunlight Financial and Nisun International.
Diversification Opportunities for Sunlight Financial and Nisun International
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sunlight and Nisun is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sunlight Financial Holdings and Nisun International Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisun International and Sunlight Financial 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 Sunlight Financial Holdings are associated (or correlated) with Nisun International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisun International has no effect on the direction of Sunlight Financial i.e., Sunlight Financial and Nisun International go up and down completely randomly.
Pair Corralation between Sunlight Financial and Nisun International
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 Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sunlight Financial Holdings vs. Nisun International Enterprise
Performance |
| Timeline |
| Sunlight Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nisun International |
Sunlight Financial and Nisun International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunlight Financial and Nisun International
The main advantage of trading using opposite Sunlight Financial and Nisun International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunlight Financial position performs unexpectedly, Nisun International 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 Nisun International will offset losses from the drop in Nisun International's long position.| Sunlight Financial vs. X Financial Class | Sunlight Financial vs. LM Funding America | Sunlight Financial vs. Nisun International Enterprise | Sunlight Financial vs. Sentage Holdings |
| Nisun International vs. Sentage Holdings | Nisun International vs. Yirendai | Nisun International vs. Lexinfintech Holdings | Nisun International vs. Lufax Holding |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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