Correlation Between Sunny Optical and Aya Gold

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Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Aya Gold 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 Aya Gold 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 Aya Gold Silver, you can compare the effects of market volatilities on Sunny Optical and Aya Gold 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 Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Aya Gold.

Diversification Opportunities for Sunny Optical and Aya Gold

-0.88
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Sunny and Aya is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver 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 Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Sunny Optical i.e., Sunny Optical and Aya Gold go up and down completely randomly.

Pair Corralation between Sunny Optical and Aya Gold

Assuming the 90 days horizon Sunny Optical Technology is not expected to generate positive returns. Moreover, Sunny Optical is 1.12 times more volatile than Aya Gold Silver. It trades away all of its potential returns to assume current level of volatility. Aya Gold Silver is currently generating about 0.03 per unit of risk. If you would invest  582.00  in Aya Gold Silver on October 11, 2024 and sell it today you would earn a total of  164.00  from holding Aya Gold Silver or generate 28.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Sunny Optical Technology  vs.  Aya Gold Silver

 Performance 
       Timeline  
Sunny Optical Technology 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Sunny Optical Technology are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Sunny Optical reported solid returns over the last few months and may actually be approaching a breakup point.
Aya Gold Silver 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Aya Gold Silver has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Sunny Optical and Aya Gold Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sunny Optical and Aya Gold

The main advantage of trading using opposite Sunny Optical and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Aya Gold 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 Aya Gold will offset losses from the drop in Aya Gold's long position.
The idea behind Sunny Optical Technology and Aya Gold Silver 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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