Correlation Between Sunny Optical and FATFISH GROUP
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and FATFISH GROUP 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 FATFISH GROUP 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 FATFISH GROUP LTD, you can compare the effects of market volatilities on Sunny Optical and FATFISH GROUP 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 FATFISH GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and FATFISH GROUP.
Diversification Opportunities for Sunny Optical and FATFISH GROUP
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunny and FATFISH is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and FATFISH GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FATFISH GROUP LTD 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 FATFISH GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FATFISH GROUP LTD has no effect on the direction of Sunny Optical i.e., Sunny Optical and FATFISH GROUP go up and down completely randomly.
Pair Corralation between Sunny Optical and FATFISH GROUP
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 0.35 times more return on investment than FATFISH GROUP. However, Sunny Optical Technology is 2.89 times less risky than FATFISH GROUP. It trades about 0.16 of its potential returns per unit of risk. FATFISH GROUP LTD is currently generating about 0.05 per unit of risk. If you would invest 635.00 in Sunny Optical Technology on September 13, 2024 and sell it today you would earn a total of 160.00 from holding Sunny Optical Technology or generate 25.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. FATFISH GROUP LTD
Performance |
| Timeline |
| Sunny Optical Technology |
| FATFISH GROUP LTD |
Sunny Optical and FATFISH GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and FATFISH GROUP
The main advantage of trading using opposite Sunny Optical and FATFISH GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, FATFISH GROUP 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 FATFISH GROUP will offset losses from the drop in FATFISH GROUP's long position.| Sunny Optical vs. Hubbell Incorporated | Sunny Optical vs. TDK Corporation | Sunny Optical vs. Superior Plus Corp | Sunny Optical vs. SIVERS SEMICONDUCTORS AB |
| FATFISH GROUP vs. FLOW TRADERS LTD | FATFISH GROUP vs. Canon Marketing Japan | FATFISH GROUP vs. MARKET VECTR RETAIL | FATFISH GROUP vs. Auto Trader 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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