Correlation Between Sun Pacific and Emerald Expositions

Can any of the company-specific risk be diversified away by investing in both Sun Pacific and Emerald Expositions 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 Sun Pacific and Emerald Expositions into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sun Pacific Holding and Emerald Expositions Events, you can compare the effects of market volatilities on Sun Pacific and Emerald Expositions 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 Sun Pacific with a short position of Emerald Expositions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Pacific and Emerald Expositions.

Diversification Opportunities for Sun Pacific and Emerald Expositions

0.07

Correlation Coefficient

Sun Pacific  Emerald Expositions

Significant diversification

The 3 months correlation between Sun and Emerald is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sun Pacific Holding and Emerald Expositions Events in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Expositions and Sun Pacific 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 Sun Pacific Holding are associated (or correlated) with Emerald Expositions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Expositions has no effect on the direction of Sun Pacific i.e., Sun Pacific and Emerald Expositions go up and down completely randomly.

Pair Corralation between Sun Pacific and Emerald Expositions

Given the investment horizon of 90 days Sun Pacific Holding is expected to under-perform the Emerald Expositions. In addition to that, Sun Pacific is 4.06 times more volatile than Emerald Expositions Events. It trades about -0.03 of its total potential returns per unit of risk. Emerald Expositions Events is currently generating about -0.09 per unit of volatility. If you would invest  479.00  in Emerald Expositions Events on October 21, 2024 and sell it today you would lose (13.00) from holding Emerald Expositions Events or give up 2.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sun Pacific Holding  vs.  Emerald Expositions Events

Sun Pacific Holding

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sun Pacific Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Sun Pacific may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Emerald Expositions

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Emerald Expositions Events are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Emerald Expositions may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Sun Pacific and Emerald Expositions

The main advantage of trading using opposite Sun Pacific and Emerald Expositions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Pacific position performs unexpectedly, Emerald Expositions 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 Emerald Expositions will offset losses from the drop in Emerald Expositions' long position.

The idea behind Sun Pacific Holding and Emerald Expositions Events pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.