Correlation Between Sunlight Financial and Nisun International

Can any of the company-specific risk be diversified away by investing in both Sunlight Financial and Nisun International 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 Sunlight Financial and Nisun International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sunlight Financial Holdings and Nisun International Enterprise, you can compare the effects of market volatilities on Sunlight Financial and Nisun International 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 Sunlight Financial with a short position of Nisun International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunlight Financial and Nisun International.

Diversification Opportunities for Sunlight Financial and Nisun International

0.16

Correlation Coefficient

Sunlight Financial  Nisun International

Average diversification

The 3 months correlation between Sunlight and Nisun is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sunlight Financial Holdings and Nisun International Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nisun International and Sunlight Financial 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 Sunlight Financial Holdings are associated (or correlated) with Nisun International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nisun International has no effect on the direction of Sunlight Financial i.e., Sunlight Financial and Nisun International go up and down completely randomly.

Pair Corralation between Sunlight Financial and Nisun International

If you would invest  947.00  in Nisun International Enterprise on August 30, 2024 and sell it today you would lose (90.00) from holding Nisun International Enterprise or give up 9.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Sunlight Financial Holdings  vs.  Nisun International Enterprise

Sunlight Financial

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sunlight Financial Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Sunlight Financial is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Nisun International

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Nisun International Enterprise are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Nisun International may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Sunlight Financial and Nisun International

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

The idea behind Sunlight Financial Holdings and Nisun International Enterprise 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.

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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.