Correlation Between Sunny Optical and Schneider Electric
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Schneider Electric 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 Schneider Electric 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 Schneider Electric SE, you can compare the effects of market volatilities on Sunny Optical and Schneider Electric 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 Schneider Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Schneider Electric.
Diversification Opportunities for Sunny Optical and Schneider Electric
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and Schneider is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Schneider Electric SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schneider Electric 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 Schneider Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schneider Electric has no effect on the direction of Sunny Optical i.e., Sunny Optical and Schneider Electric go up and down completely randomly.
Pair Corralation between Sunny Optical and Schneider Electric
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 1.24 times more return on investment than Schneider Electric. However, Sunny Optical is 1.24 times more volatile than Schneider Electric SE. It trades about 0.02 of its potential returns per unit of risk. Schneider Electric SE is currently generating about -0.13 per unit of risk. If you would invest 1,045 in Sunny Optical Technology on December 11, 2024 and sell it today you would earn a total of 6.00 from holding Sunny Optical Technology or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Optical Technology vs. Schneider Electric SE
Performance |
| Timeline |
| Sunny Optical Technology |
| Schneider Electric |
Sunny Optical and Schneider Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Schneider Electric
The main advantage of trading using opposite Sunny Optical and Schneider Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Schneider Electric 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 Schneider Electric will offset losses from the drop in Schneider Electric's long position.| Sunny Optical vs. IMPERIAL TOBACCO | Sunny Optical vs. LG Display Co | Sunny Optical vs. ePlay Digital | Sunny Optical vs. Ming Le Sports |
| Schneider Electric vs. New Residential Investment | Schneider Electric vs. LG Display Co | Schneider Electric vs. Gladstone Investment | Schneider Electric vs. MEDCAW INVESTMENTS LS 01 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |