Correlation Between Sunny Optical and GRIFFIN MINING
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and GRIFFIN MINING 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 GRIFFIN MINING 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 GRIFFIN MINING LTD, you can compare the effects of market volatilities on Sunny Optical and GRIFFIN MINING 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 GRIFFIN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and GRIFFIN MINING.
Diversification Opportunities for Sunny Optical and GRIFFIN MINING
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and GRIFFIN is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and GRIFFIN MINING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIFFIN MINING LTD 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 GRIFFIN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIFFIN MINING LTD has no effect on the direction of Sunny Optical i.e., Sunny Optical and GRIFFIN MINING go up and down completely randomly.
Pair Corralation between Sunny Optical and GRIFFIN MINING
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 2.24 times more return on investment than GRIFFIN MINING. However, Sunny Optical is 2.24 times more volatile than GRIFFIN MINING LTD. It trades about 0.36 of its potential returns per unit of risk. GRIFFIN MINING LTD is currently generating about 0.09 per unit of risk. If you would invest 702.00 in Sunny Optical Technology on September 23, 2024 and sell it today you would earn a total of 168.00 from holding Sunny Optical Technology or generate 23.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. GRIFFIN MINING LTD
Performance |
| Timeline |
| Sunny Optical Technology |
| GRIFFIN MINING LTD |
Sunny Optical and GRIFFIN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and GRIFFIN MINING
The main advantage of trading using opposite Sunny Optical and GRIFFIN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, GRIFFIN MINING 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 GRIFFIN MINING will offset losses from the drop in GRIFFIN MINING's long position.| Sunny Optical vs. Amphenol | Sunny Optical vs. Hon Hai Precision | Sunny Optical vs. Samsung SDI Co | Sunny Optical vs. Murata Manufacturing Co |
| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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