Correlation Between Sunny Optical and NEWELL RUBBERMAID
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID 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 NEWELL RUBBERMAID , you can compare the effects of market volatilities on Sunny Optical and NEWELL RUBBERMAID 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 NEWELL RUBBERMAID. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and NEWELL RUBBERMAID.
Diversification Opportunities for Sunny Optical and NEWELL RUBBERMAID
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and NEWELL is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and NEWELL RUBBERMAID in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWELL RUBBERMAID 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 NEWELL RUBBERMAID. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWELL RUBBERMAID has no effect on the direction of Sunny Optical i.e., Sunny Optical and NEWELL RUBBERMAID go up and down completely randomly.
Pair Corralation between Sunny Optical and NEWELL RUBBERMAID
Assuming the 90 days horizon Sunny Optical Technology is expected to under-perform the NEWELL RUBBERMAID. In addition to that, Sunny Optical is 1.01 times more volatile than NEWELL RUBBERMAID . It trades about 0.0 of its total potential returns per unit of risk. NEWELL RUBBERMAID is currently generating about 0.0 per unit of volatility. If you would invest 1,340 in NEWELL RUBBERMAID on October 12, 2024 and sell it today you would lose (392.00) from holding NEWELL RUBBERMAID or give up 29.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. NEWELL RUBBERMAID
Performance |
| Timeline |
| Sunny Optical Technology |
| NEWELL RUBBERMAID |
Sunny Optical and NEWELL RUBBERMAID Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and NEWELL RUBBERMAID
The main advantage of trading using opposite Sunny Optical and NEWELL RUBBERMAID positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, NEWELL RUBBERMAID 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 NEWELL RUBBERMAID will offset losses from the drop in NEWELL RUBBERMAID's long position.| Sunny Optical vs. GREENX METALS LTD | Sunny Optical vs. SIERRA METALS | Sunny Optical vs. NorAm Drilling AS | Sunny Optical vs. VIRGIN WINES UK |
| NEWELL RUBBERMAID vs. MCEWEN MINING INC | NEWELL RUBBERMAID vs. Addtech AB | NEWELL RUBBERMAID vs. Sunny Optical Technology | NEWELL RUBBERMAID vs. THORNEY TECHS LTD |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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