Correlation Between Sunny Optical and Easy Software
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Easy 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 Easy 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 Easy Software AG, you can compare the effects of market volatilities on Sunny Optical and Easy 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 Easy Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Easy Software.
Diversification Opportunities for Sunny Optical and Easy Software
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and Easy is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Easy Software AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Easy Software AG 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 Easy Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Easy Software AG has no effect on the direction of Sunny Optical i.e., Sunny Optical and Easy Software go up and down completely randomly.
Pair Corralation between Sunny Optical and Easy Software
Assuming the 90 days horizon Sunny Optical Technology is expected to under-perform the Easy Software. In addition to that, Sunny Optical is 1.39 times more volatile than Easy Software AG. It trades about 0.0 of its total potential returns per unit of risk. Easy Software AG is currently generating about 0.03 per unit of volatility. If you would invest 1,437 in Easy Software AG on October 11, 2024 and sell it today you would earn a total of 353.00 from holding Easy Software AG or generate 24.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sunny Optical Technology vs. Easy Software AG
Performance |
| Timeline |
| Sunny Optical Technology |
| Easy Software AG |
Sunny Optical and Easy Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Easy Software
The main advantage of trading using opposite Sunny Optical and Easy Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Easy 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 Easy Software will offset losses from the drop in Easy Software's long position.| Sunny Optical vs. GREENX METALS LTD | Sunny Optical vs. De Grey Mining | Sunny Optical vs. Kingdee International Software | Sunny Optical vs. Lion Biotechnologies |
| Easy Software vs. TEXAS ROADHOUSE | Easy Software vs. EVS Broadcast Equipment | Easy Software vs. Renesas Electronics | Easy Software vs. URBAN OUTFITTERS |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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