Correlation Between Sunny Optical and Bilibili
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Bilibili 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 Bilibili 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 Bilibili, you can compare the effects of market volatilities on Sunny Optical and Bilibili 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 Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Bilibili.
Diversification Opportunities for Sunny Optical and Bilibili
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and Bilibili is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili 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 Bilibili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilibili has no effect on the direction of Sunny Optical i.e., Sunny Optical and Bilibili go up and down completely randomly.
Pair Corralation between Sunny Optical and Bilibili
Assuming the 90 days horizon Sunny Optical Technology is not expected to generate positive returns. However, Sunny Optical Technology is 1.2 times less risky than Bilibili. It waists most of its returns potential to compensate for thr risk taken. Bilibili is generating about 0.01 per unit of risk. If you would invest 2,330 in Bilibili on October 11, 2024 and sell it today you would lose (650.00) from holding Bilibili or give up 27.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. Bilibili
Performance |
| Timeline |
| Sunny Optical Technology |
| Bilibili |
Sunny Optical and Bilibili Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Bilibili
The main advantage of trading using opposite Sunny Optical and Bilibili positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Bilibili 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 Bilibili will offset losses from the drop in Bilibili's long position.| Sunny Optical vs. FORWARD AIR P | Sunny Optical vs. MTY Food Group | Sunny Optical vs. Westinghouse Air Brake | Sunny Optical vs. Corsair Gaming |
| Bilibili vs. THORNEY TECHS LTD | Bilibili vs. ANGLO ASIAN MINING | Bilibili vs. Sunny Optical Technology | Bilibili vs. Minerals Technologies |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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