Correlation Between Sunny Optical and ASHFORD HOSPITTRUST
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and ASHFORD HOSPITTRUST 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 ASHFORD HOSPITTRUST 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 ASHFORD HOSPITTRUST, you can compare the effects of market volatilities on Sunny Optical and ASHFORD HOSPITTRUST 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 ASHFORD HOSPITTRUST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and ASHFORD HOSPITTRUST.
Diversification Opportunities for Sunny Optical and ASHFORD HOSPITTRUST
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunny and ASHFORD is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and ASHFORD HOSPITTRUST in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASHFORD HOSPITTRUST 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 ASHFORD HOSPITTRUST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASHFORD HOSPITTRUST has no effect on the direction of Sunny Optical i.e., Sunny Optical and ASHFORD HOSPITTRUST go up and down completely randomly.
Pair Corralation between Sunny Optical and ASHFORD HOSPITTRUST
If you would invest 655.00 in Sunny Optical Technology on September 14, 2024 and sell it today you would earn a total of 130.00 from holding Sunny Optical Technology or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sunny Optical Technology vs. ASHFORD HOSPITTRUST
Performance |
| Timeline |
| Sunny Optical Technology |
| ASHFORD HOSPITTRUST |
Sunny Optical and ASHFORD HOSPITTRUST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and ASHFORD HOSPITTRUST
The main advantage of trading using opposite Sunny Optical and ASHFORD HOSPITTRUST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, ASHFORD HOSPITTRUST 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 ASHFORD HOSPITTRUST will offset losses from the drop in ASHFORD HOSPITTRUST'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 |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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