Correlation Between Sunny Optical and KRAKATAU STEEL
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and KRAKATAU STEEL 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 KRAKATAU STEEL 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 KRAKATAU STEEL B , you can compare the effects of market volatilities on Sunny Optical and KRAKATAU STEEL 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 KRAKATAU STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and KRAKATAU STEEL.
Diversification Opportunities for Sunny Optical and KRAKATAU STEEL
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sunny and KRAKATAU is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and KRAKATAU STEEL B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAKATAU STEEL B 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 KRAKATAU STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAKATAU STEEL B has no effect on the direction of Sunny Optical i.e., Sunny Optical and KRAKATAU STEEL go up and down completely randomly.
Pair Corralation between Sunny Optical and KRAKATAU STEEL
If you would invest 711.00 in Sunny Optical Technology on September 25, 2024 and sell it today you would earn a total of 122.00 from holding Sunny Optical Technology or generate 17.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. KRAKATAU STEEL B
Performance |
| Timeline |
| Sunny Optical Technology |
| KRAKATAU STEEL B |
Sunny Optical and KRAKATAU STEEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and KRAKATAU STEEL
The main advantage of trading using opposite Sunny Optical and KRAKATAU STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, KRAKATAU STEEL 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 KRAKATAU STEEL will offset losses from the drop in KRAKATAU STEEL's long position.| Sunny Optical vs. Amphenol | Sunny Optical vs. Hon Hai Precision | Sunny Optical vs. Samsung SDI Co | Sunny Optical vs. Murata Manufacturing Co |
| KRAKATAU STEEL vs. BRAGG GAMING GRP | KRAKATAU STEEL vs. Sunny Optical Technology | KRAKATAU STEEL vs. FUTURE GAMING GRP | KRAKATAU STEEL vs. AECOM TECHNOLOGY |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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