Correlation Between Sunny Optical and HEXINDO ADIPERKASA
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA, you can compare the effects of market volatilities on Sunny Optical and HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and HEXINDO ADIPERKASA.
Diversification Opportunities for Sunny Optical and HEXINDO ADIPERKASA
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunny and HEXINDO is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and HEXINDO ADIPERKASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEXINDO ADIPERKASA has no effect on the direction of Sunny Optical i.e., Sunny Optical and HEXINDO ADIPERKASA go up and down completely randomly.
Pair Corralation between Sunny Optical and HEXINDO ADIPERKASA
Assuming the 90 days horizon Sunny Optical Technology is expected to generate 1.93 times more return on investment than HEXINDO ADIPERKASA. However, Sunny Optical is 1.93 times more volatile than HEXINDO ADIPERKASA. It trades about 0.15 of its potential returns per unit of risk. HEXINDO ADIPERKASA is currently generating about -0.1 per unit of risk. If you would invest 780.00 in Sunny Optical Technology on December 4, 2024 and sell it today you would earn a total of 274.00 from holding Sunny Optical Technology or generate 35.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sunny Optical Technology vs. HEXINDO ADIPERKASA
Performance |
Timeline |
Sunny Optical Technology |
HEXINDO ADIPERKASA |
Sunny Optical and HEXINDO ADIPERKASA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunny Optical and HEXINDO ADIPERKASA
The main advantage of trading using opposite Sunny Optical and HEXINDO ADIPERKASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, HEXINDO ADIPERKASA 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 HEXINDO ADIPERKASA will offset losses from the drop in HEXINDO ADIPERKASA's long position.Sunny Optical vs. Pets at Home | Sunny Optical vs. OFFICE DEPOT | Sunny Optical vs. YATRA ONLINE DL 0001 | Sunny Optical vs. BOVIS HOMES GROUP |
HEXINDO ADIPERKASA vs. QBE Insurance Group | HEXINDO ADIPERKASA vs. GLG LIFE TECH | HEXINDO ADIPERKASA vs. PANIN INSURANCE | HEXINDO ADIPERKASA vs. Sabre Insurance Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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