Correlation Between Sunny Optical and INDCOMMBK CHINA
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and INDCOMMBK CHINA 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 INDCOMMBK CHINA 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 INDCOMMBK CHINA ADR20, you can compare the effects of market volatilities on Sunny Optical and INDCOMMBK CHINA 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 INDCOMMBK CHINA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and INDCOMMBK CHINA.
Diversification Opportunities for Sunny Optical and INDCOMMBK CHINA
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and INDCOMMBK is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and INDCOMMBK CHINA ADR20 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INDCOMMBK CHINA ADR20 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 INDCOMMBK CHINA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INDCOMMBK CHINA ADR20 has no effect on the direction of Sunny Optical i.e., Sunny Optical and INDCOMMBK CHINA go up and down completely randomly.
Pair Corralation between Sunny Optical and INDCOMMBK CHINA
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 0.95 times more return on investment than INDCOMMBK CHINA. However, Sunny Optical Technology is 1.05 times less risky than INDCOMMBK CHINA. It trades about 0.4 of its potential returns per unit of risk. INDCOMMBK CHINA ADR20 is currently generating about 0.1 per unit of risk. If you would invest 635.00 in Sunny Optical Technology on September 15, 2024 and sell it today you would earn a total of 156.00 from holding Sunny Optical Technology or generate 24.57% 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. INDCOMMBK CHINA ADR20
Performance |
| Timeline |
| Sunny Optical Technology |
| INDCOMMBK CHINA ADR20 |
Sunny Optical and INDCOMMBK CHINA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and INDCOMMBK CHINA
The main advantage of trading using opposite Sunny Optical and INDCOMMBK CHINA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, INDCOMMBK CHINA 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 INDCOMMBK CHINA will offset losses from the drop in INDCOMMBK CHINA'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 |
| INDCOMMBK CHINA vs. Natural Health Trends | INDCOMMBK CHINA vs. Sunny Optical Technology | INDCOMMBK CHINA vs. FANDIFI TECHNOLOGY P | INDCOMMBK CHINA vs. ATRYS HEALTH SA |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |