Correlation Between Sunny Optical and Safestore Holdings
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Safestore Holdings 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 Safestore Holdings 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 Safestore Holdings plc, you can compare the effects of market volatilities on Sunny Optical and Safestore Holdings 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 Safestore Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Safestore Holdings.
Diversification Opportunities for Sunny Optical and Safestore Holdings
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunny and Safestore is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Safestore Holdings plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safestore Holdings plc 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 Safestore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safestore Holdings plc has no effect on the direction of Sunny Optical i.e., Sunny Optical and Safestore Holdings go up and down completely randomly.
Pair Corralation between Sunny Optical and Safestore Holdings
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 1.77 times more return on investment than Safestore Holdings. However, Sunny Optical is 1.77 times more volatile than Safestore Holdings plc. It trades about 0.0 of its potential returns per unit of risk. Safestore Holdings plc is currently generating about -0.02 per unit of risk. If you would invest 1,128 in Sunny Optical Technology on October 16, 2024 and sell it today you would lose (358.00) from holding Sunny Optical Technology or give up 31.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sunny Optical Technology vs. Safestore Holdings plc
Performance |
| Timeline |
| Sunny Optical Technology |
| Safestore Holdings plc |
Sunny Optical and Safestore Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Safestore Holdings
The main advantage of trading using opposite Sunny Optical and Safestore Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Safestore Holdings 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 Safestore Holdings will offset losses from the drop in Safestore Holdings' long position.| Sunny Optical vs. Corsair Gaming | Sunny Optical vs. Lamar Advertising | Sunny Optical vs. CHINA SOUTHN AIR H | Sunny Optical vs. MUTUIONLINE |
| Safestore Holdings vs. Grupo Carso SAB | Safestore Holdings vs. GRUPO CARSO A1 | Safestore Holdings vs. Haier Smart Home | Safestore Holdings vs. Darden Restaurants |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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