Correlation Between Sunny Optical and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and ARDAGH METAL 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 ARDAGH METAL 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 ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on Sunny Optical and ARDAGH METAL 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 ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and ARDAGH METAL.
Diversification Opportunities for Sunny Optical and ARDAGH METAL
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunny and ARDAGH is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL 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 ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of Sunny Optical i.e., Sunny Optical and ARDAGH METAL go up and down completely randomly.
Pair Corralation between Sunny Optical and ARDAGH METAL
Assuming the 90 days horizon Sunny Optical is expected to generate 12.86 times less return on investment than ARDAGH METAL. But when comparing it to its historical volatility, Sunny Optical Technology is 1.0 times less risky than ARDAGH METAL. It trades about 0.0 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 277.00 in ARDAGH METAL PACDL 0001 on October 13, 2024 and sell it today you would lose (19.00) from holding ARDAGH METAL PACDL 0001 or give up 6.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| Sunny Optical Technology |
| ARDAGH METAL PACDL |
Sunny Optical and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and ARDAGH METAL
The main advantage of trading using opposite Sunny Optical and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| Sunny Optical vs. INDOFOOD AGRI RES | Sunny Optical vs. Datadog | Sunny Optical vs. DATATEC LTD 2 | Sunny Optical vs. Thai Beverage Public |
| ARDAGH METAL vs. Addtech AB | ARDAGH METAL vs. Uber Technologies | ARDAGH METAL vs. SEKISUI CHEMICAL | ARDAGH METAL vs. Sunny Optical Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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