Correlation Between Sunny Optical and Virtu Financial
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Virtu Financial 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 Virtu Financial 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 Virtu Financial, you can compare the effects of market volatilities on Sunny Optical and Virtu Financial 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 Virtu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Virtu Financial.
Diversification Opportunities for Sunny Optical and Virtu Financial
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sunny and Virtu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Virtu Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtu Financial 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 Virtu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtu Financial has no effect on the direction of Sunny Optical i.e., Sunny Optical and Virtu Financial go up and down completely randomly.
Pair Corralation between Sunny Optical and Virtu Financial
Assuming the 90 days horizon Sunny Optical is expected to generate 1.14 times less return on investment than Virtu Financial. In addition to that, Sunny Optical is 2.01 times more volatile than Virtu Financial. It trades about 0.08 of its total potential returns per unit of risk. Virtu Financial is currently generating about 0.19 per unit of volatility. If you would invest 3,480 in Virtu Financial on October 30, 2024 and sell it today you would earn a total of 240.00 from holding Virtu Financial or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. Virtu Financial
Performance |
| Timeline |
| Sunny Optical Technology |
| Virtu Financial |
Sunny Optical and Virtu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Virtu Financial
The main advantage of trading using opposite Sunny Optical and Virtu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Virtu Financial 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 Virtu Financial will offset losses from the drop in Virtu Financial's long position.| Sunny Optical vs. Diamyd Medical AB | Sunny Optical vs. Merit Medical Systems | Sunny Optical vs. Firan Technology Group | Sunny Optical vs. Amkor Technology |
| Virtu Financial vs. Samsung Electronics Co | Virtu Financial vs. STMicroelectronics NV | Virtu Financial vs. CSSC Offshore Marine | Virtu Financial vs. STMICROELECTRONICS |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |