Correlation Between Sunny Optical and STHREE PLC
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and STHREE PLC 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 STHREE PLC 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 STHREE PLC LS, you can compare the effects of market volatilities on Sunny Optical and STHREE PLC 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 STHREE PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and STHREE PLC.
Diversification Opportunities for Sunny Optical and STHREE PLC
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunny and STHREE is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and STHREE PLC LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STHREE PLC LS 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 STHREE PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STHREE PLC LS has no effect on the direction of Sunny Optical i.e., Sunny Optical and STHREE PLC go up and down completely randomly.
Pair Corralation between Sunny Optical and STHREE PLC
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 3.84 times more return on investment than STHREE PLC. However, Sunny Optical is 3.84 times more volatile than STHREE PLC LS. It trades about 0.32 of its potential returns per unit of risk. STHREE PLC LS is currently generating about 0.05 per unit of risk. If you would invest 573.00 in Sunny Optical Technology on September 4, 2024 and sell it today you would earn a total of 180.00 from holding Sunny Optical Technology or generate 31.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. STHREE PLC LS
Performance |
| Timeline |
| Sunny Optical Technology |
| STHREE PLC LS |
Sunny Optical and STHREE PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and STHREE PLC
The main advantage of trading using opposite Sunny Optical and STHREE PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, STHREE PLC 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 STHREE PLC will offset losses from the drop in STHREE PLC's long position.| Sunny Optical vs. Hon Hai Precision | Sunny Optical vs. Samsung SDI Co | Sunny Optical vs. Murata Manufacturing Co | Sunny Optical vs. Mitsubishi Electric |
| STHREE PLC vs. Singapore Reinsurance | STHREE PLC vs. SBI Insurance Group | STHREE PLC vs. Goosehead Insurance | STHREE PLC vs. Sunny Optical Technology |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |