Correlation Between Sunny Optical and Fiskars Oyj
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Fiskars Oyj 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 Fiskars Oyj 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 Fiskars Oyj Abp, you can compare the effects of market volatilities on Sunny Optical and Fiskars Oyj 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 Fiskars Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Fiskars Oyj.
Diversification Opportunities for Sunny Optical and Fiskars Oyj
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunny and Fiskars is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Fiskars Oyj Abp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiskars Oyj Abp 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 Fiskars Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiskars Oyj Abp has no effect on the direction of Sunny Optical i.e., Sunny Optical and Fiskars Oyj go up and down completely randomly.
Pair Corralation between Sunny Optical and Fiskars Oyj
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 2.82 times more return on investment than Fiskars Oyj. However, Sunny Optical is 2.82 times more volatile than Fiskars Oyj Abp. It trades about 0.21 of its potential returns per unit of risk. Fiskars Oyj Abp is currently generating about -0.07 per unit of risk. If you would invest 505.00 in Sunny Optical Technology on September 12, 2024 and sell it today you would earn a total of 302.00 from holding Sunny Optical Technology or generate 59.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. Fiskars Oyj Abp
Performance |
| Timeline |
| Sunny Optical Technology |
| Fiskars Oyj Abp |
Sunny Optical and Fiskars Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Fiskars Oyj
The main advantage of trading using opposite Sunny Optical and Fiskars Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Fiskars Oyj 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 Fiskars Oyj will offset losses from the drop in Fiskars Oyj'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 |
| Fiskars Oyj vs. Lowes Companies | Fiskars Oyj vs. Haverty Furniture Companies | Fiskars Oyj vs. Superior Plus Corp | Fiskars Oyj vs. SIVERS SEMICONDUCTORS AB |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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