Correlation Between Sunny Optical and Nok Airlines
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Nok Airlines 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 Nok Airlines 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 Nok Airlines PCL, you can compare the effects of market volatilities on Sunny Optical and Nok Airlines 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 Nok Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Nok Airlines.
Diversification Opportunities for Sunny Optical and Nok Airlines
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunny and Nok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Nok Airlines PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nok Airlines PCL 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 Nok Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nok Airlines PCL has no effect on the direction of Sunny Optical i.e., Sunny Optical and Nok Airlines go up and down completely randomly.
Pair Corralation between Sunny Optical and Nok Airlines
If you would invest 786.00 in Sunny Optical Technology on August 25, 2024 and sell it today you would lose (102.00) from holding Sunny Optical Technology or give up 12.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. Nok Airlines PCL
Performance |
| Timeline |
| Sunny Optical Technology |
| Nok Airlines PCL |
Sunny Optical and Nok Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Nok Airlines
The main advantage of trading using opposite Sunny Optical and Nok Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Nok Airlines 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 Nok Airlines will offset losses from the drop in Nok Airlines' long position.| Sunny Optical vs. Amphenol | Sunny Optical vs. Hon Hai Precision | Sunny Optical vs. Samsung SDI Co | Sunny Optical vs. Corning Incorporated |
| Nok Airlines vs. TYSON FOODS A | Nok Airlines vs. H FARM SPA | Nok Airlines vs. JJ SNACK FOODS | Nok Airlines vs. Astral Foods Limited |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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