Correlation Between Sunny Optical and CyberArk Software
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and CyberArk Software 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 CyberArk Software 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 CyberArk Software, you can compare the effects of market volatilities on Sunny Optical and CyberArk Software 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 CyberArk Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and CyberArk Software.
Diversification Opportunities for Sunny Optical and CyberArk Software
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and CyberArk is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and CyberArk Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberArk Software 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 CyberArk Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberArk Software has no effect on the direction of Sunny Optical i.e., Sunny Optical and CyberArk Software go up and down completely randomly.
Pair Corralation between Sunny Optical and CyberArk Software
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 1.22 times more return on investment than CyberArk Software. However, Sunny Optical is 1.22 times more volatile than CyberArk Software. It trades about 0.32 of its potential returns per unit of risk. CyberArk Software is currently generating about 0.28 per unit of risk. If you would invest 573.00 in Sunny Optical Technology on September 4, 2024 and sell it today you would earn a total of 180.00 from holding Sunny Optical Technology or generate 31.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. CyberArk Software
Performance |
| Timeline |
| Sunny Optical Technology |
| CyberArk Software |
Sunny Optical and CyberArk Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and CyberArk Software
The main advantage of trading using opposite Sunny Optical and CyberArk Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, CyberArk Software 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 CyberArk Software will offset losses from the drop in CyberArk Software's long position.| Sunny Optical vs. Hon Hai Precision | Sunny Optical vs. Samsung SDI Co | Sunny Optical vs. Murata Manufacturing Co | Sunny Optical vs. Mitsubishi Electric |
| CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc | CyberArk Software vs. Apple Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |