Correlation Between Sunny Optical and Japan Post
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Japan Post 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 Japan Post 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 Japan Post Insurance, you can compare the effects of market volatilities on Sunny Optical and Japan Post 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 Japan Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Japan Post.
Diversification Opportunities for Sunny Optical and Japan Post
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and Japan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Japan Post Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Japan Post Insurance 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 Japan Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Japan Post Insurance has no effect on the direction of Sunny Optical i.e., Sunny Optical and Japan Post go up and down completely randomly.
Pair Corralation between Sunny Optical and Japan Post
Assuming the 90 days horizon Sunny Optical Technology is expected to under-perform the Japan Post. In addition to that, Sunny Optical is 1.98 times more volatile than Japan Post Insurance. It trades about 0.0 of its total potential returns per unit of risk. Japan Post Insurance is currently generating about 0.02 per unit of volatility. If you would invest 1,620 in Japan Post Insurance on October 16, 2024 and sell it today you would earn a total of 120.00 from holding Japan Post Insurance or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sunny Optical Technology vs. Japan Post Insurance
Performance |
| Timeline |
| Sunny Optical Technology |
| Japan Post Insurance |
Sunny Optical and Japan Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Japan Post
The main advantage of trading using opposite Sunny Optical and Japan Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Japan Post 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 Japan Post will offset losses from the drop in Japan Post's long position.| Sunny Optical vs. Corsair Gaming | Sunny Optical vs. Lamar Advertising | Sunny Optical vs. CHINA SOUTHN AIR H | Sunny Optical vs. MUTUIONLINE |
| Japan Post vs. SPECTRAL MEDICAL | Japan Post vs. Diamyd Medical AB | Japan Post vs. SALESFORCE INC CDR | Japan Post vs. SCANDMEDICAL SOLDK 040 |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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