Correlation Between Sunny Optical and POLAR POWER
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and POLAR POWER 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 POLAR POWER 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 POLAR POWER INC, you can compare the effects of market volatilities on Sunny Optical and POLAR POWER 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 POLAR POWER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and POLAR POWER.
Diversification Opportunities for Sunny Optical and POLAR POWER
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sunny and POLAR is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and POLAR POWER INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on POLAR POWER INC 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 POLAR POWER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of POLAR POWER INC has no effect on the direction of Sunny Optical i.e., Sunny Optical and POLAR POWER go up and down completely randomly.
Pair Corralation between Sunny Optical and POLAR POWER
If you would invest 702.00 in Sunny Optical Technology on September 23, 2024 and sell it today you would earn a total of 168.00 from holding Sunny Optical Technology or generate 23.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sunny Optical Technology vs. POLAR POWER INC
Performance |
| Timeline |
| Sunny Optical Technology |
| POLAR POWER INC |
Sunny Optical and POLAR POWER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and POLAR POWER
The main advantage of trading using opposite Sunny Optical and POLAR POWER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, POLAR POWER 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 POLAR POWER will offset losses from the drop in POLAR POWER's long position.| Sunny Optical vs. Amphenol | Sunny Optical vs. Hon Hai Precision | Sunny Optical vs. Samsung SDI Co | Sunny Optical vs. Murata Manufacturing Co |
| POLAR POWER vs. MCEWEN MINING INC | POLAR POWER vs. Sunny Optical Technology | POLAR POWER vs. PKSHA TECHNOLOGY INC | POLAR POWER vs. Western Copper and |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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