Correlation Between Sunny Optical and MAGNUM MINING
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and MAGNUM 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 MAGNUM 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 MAGNUM MINING EXP, you can compare the effects of market volatilities on Sunny Optical and MAGNUM 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 MAGNUM MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and MAGNUM MINING.
Diversification Opportunities for Sunny Optical and MAGNUM MINING
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunny and MAGNUM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and MAGNUM MINING EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGNUM MINING EXP 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 MAGNUM MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGNUM MINING EXP has no effect on the direction of Sunny Optical i.e., Sunny Optical and MAGNUM MINING go up and down completely randomly.
Pair Corralation between Sunny Optical and MAGNUM MINING
If you would invest 802.00 in Sunny Optical Technology on November 3, 2024 and sell it today you would earn a total of 65.00 from holding Sunny Optical Technology or generate 8.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. MAGNUM MINING EXP
Performance |
| Timeline |
| Sunny Optical Technology |
| MAGNUM MINING EXP |
Sunny Optical and MAGNUM MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and MAGNUM MINING
The main advantage of trading using opposite Sunny Optical and MAGNUM MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, MAGNUM 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 MAGNUM MINING will offset losses from the drop in MAGNUM MINING's long position.| Sunny Optical vs. Charter Communications | Sunny Optical vs. Cognizant Technology Solutions | Sunny Optical vs. SK TELECOM TDADR | Sunny Optical vs. X FAB Silicon Foundries |
| MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM MINING vs. Apple Inc | MAGNUM 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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