Correlation Between Sunny Optical and Axcelis Technologies
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Axcelis Technologies 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 Axcelis Technologies 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 Axcelis Technologies, you can compare the effects of market volatilities on Sunny Optical and Axcelis Technologies 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 Axcelis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Axcelis Technologies.
Diversification Opportunities for Sunny Optical and Axcelis Technologies
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sunny and Axcelis is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Axcelis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Axcelis Technologies 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 Axcelis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Axcelis Technologies has no effect on the direction of Sunny Optical i.e., Sunny Optical and Axcelis Technologies go up and down completely randomly.
Pair Corralation between Sunny Optical and Axcelis Technologies
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 1.24 times more return on investment than Axcelis Technologies. However, Sunny Optical is 1.24 times more volatile than Axcelis Technologies. It trades about 0.05 of its potential returns per unit of risk. Axcelis Technologies is currently generating about -0.05 per unit of risk. If you would invest 569.00 in Sunny Optical Technology on August 27, 2024 and sell it today you would earn a total of 133.00 from holding Sunny Optical Technology or generate 23.37% 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. Axcelis Technologies
Performance |
| Timeline |
| Sunny Optical Technology |
| Axcelis Technologies |
Sunny Optical and Axcelis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Optical and Axcelis Technologies
The main advantage of trading using opposite Sunny Optical and Axcelis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Axcelis Technologies 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 Axcelis Technologies will offset losses from the drop in Axcelis Technologies' long position.| Sunny Optical vs. Goosehead Insurance | Sunny Optical vs. Astral Foods Limited | Sunny Optical vs. AUSTEVOLL SEAFOOD | Sunny Optical vs. JJ SNACK FOODS |
| Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc | Axcelis Technologies vs. Apple Inc |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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