Correlation Between Sunny Optical and AOI Electronics
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and AOI Electronics 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 AOI Electronics 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 AOI Electronics Co, you can compare the effects of market volatilities on Sunny Optical and AOI Electronics 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 AOI Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and AOI Electronics.
Diversification Opportunities for Sunny Optical and AOI Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sunny and AOI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and AOI Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AOI Electronics 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 AOI Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AOI Electronics has no effect on the direction of Sunny Optical i.e., Sunny Optical and AOI Electronics go up and down completely randomly.
Pair Corralation between Sunny Optical and AOI Electronics
If you would invest 857.00 in Sunny Optical Technology on December 28, 2024 and sell it today you would earn a total of 19.00 from holding Sunny Optical Technology or generate 2.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sunny Optical Technology vs. AOI Electronics Co
Performance |
Timeline |
Sunny Optical Technology |
AOI Electronics |
Sunny Optical and AOI Electronics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunny Optical and AOI Electronics
The main advantage of trading using opposite Sunny Optical and AOI Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, AOI Electronics 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 AOI Electronics will offset losses from the drop in AOI Electronics' long position.Sunny Optical vs. KENEDIX OFFICE INV | Sunny Optical vs. Genertec Universal Medical | Sunny Optical vs. COMPUGROUP MEDICAL V | Sunny Optical vs. China Medical System |
AOI Electronics vs. Norwegian Air Shuttle | AOI Electronics vs. Wizz Air Holdings | AOI Electronics vs. NORWEGIAN AIR SHUT | AOI Electronics vs. International Consolidated Airlines |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
CEOs Directory Screen CEOs from public companies around the world | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |