Correlation Between Sunny Optical and SCHALTBAU HOLDING
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and SCHALTBAU HOLDING 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 SCHALTBAU HOLDING 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 SCHALTBAU HOLDING, you can compare the effects of market volatilities on Sunny Optical and SCHALTBAU HOLDING 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 SCHALTBAU HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and SCHALTBAU HOLDING.
Diversification Opportunities for Sunny Optical and SCHALTBAU HOLDING
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sunny and SCHALTBAU is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and SCHALTBAU HOLDING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCHALTBAU HOLDING 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 SCHALTBAU HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCHALTBAU HOLDING has no effect on the direction of Sunny Optical i.e., Sunny Optical and SCHALTBAU HOLDING go up and down completely randomly.
Pair Corralation between Sunny Optical and SCHALTBAU HOLDING
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 3.44 times more return on investment than SCHALTBAU HOLDING. However, Sunny Optical is 3.44 times more volatile than SCHALTBAU HOLDING. It trades about 0.01 of its potential returns per unit of risk. SCHALTBAU HOLDING is currently generating about 0.02 per unit of risk. If you would invest 979.00 in Sunny Optical Technology on September 12, 2024 and sell it today you would lose (172.00) from holding Sunny Optical Technology or give up 17.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. SCHALTBAU HOLDING
Performance |
| Timeline |
| Sunny Optical Technology |
| SCHALTBAU HOLDING |
Sunny Optical and SCHALTBAU HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and SCHALTBAU HOLDING
The main advantage of trading using opposite Sunny Optical and SCHALTBAU HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, SCHALTBAU HOLDING 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 SCHALTBAU HOLDING will offset losses from the drop in SCHALTBAU HOLDING's long position.| Sunny Optical vs. Hubbell Incorporated | Sunny Optical vs. TDK Corporation | Sunny Optical vs. Superior Plus Corp | Sunny Optical vs. SIVERS SEMICONDUCTORS AB |
| SCHALTBAU HOLDING vs. AOYAMA TRADING | SCHALTBAU HOLDING vs. SLR Investment Corp | SCHALTBAU HOLDING vs. New Residential Investment | SCHALTBAU HOLDING vs. DIVERSIFIED ROYALTY |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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