Correlation Between Sunny Optical and Amphenol
Can any of the company-specific risk be diversified away by investing in both Sunny Optical and Amphenol 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 Amphenol 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 Amphenol, you can compare the effects of market volatilities on Sunny Optical and Amphenol 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 Amphenol. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and Amphenol.
Diversification Opportunities for Sunny Optical and Amphenol
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and Amphenol is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and Amphenol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amphenol 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 Amphenol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amphenol has no effect on the direction of Sunny Optical i.e., Sunny Optical and Amphenol go up and down completely randomly.
Pair Corralation between Sunny Optical and Amphenol
Assuming the 90 days horizon Sunny Optical is expected to generate 3.83 times less return on investment than Amphenol. In addition to that, Sunny Optical is 2.26 times more volatile than Amphenol. It trades about 0.01 of its total potential returns per unit of risk. Amphenol is currently generating about 0.09 per unit of volatility. If you would invest 3,521 in Amphenol on September 23, 2024 and sell it today you would earn a total of 3,279 from holding Amphenol or generate 93.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Sunny Optical Technology vs. Amphenol
Performance |
Timeline |
Sunny Optical Technology |
Amphenol |
Sunny Optical and Amphenol Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunny Optical and Amphenol
The main advantage of trading using opposite Sunny Optical and Amphenol positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Optical position performs unexpectedly, Amphenol 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 Amphenol will offset losses from the drop in Amphenol's long position.Sunny Optical vs. G III Apparel Group | Sunny Optical vs. ATOSS SOFTWARE | Sunny Optical vs. Take Two Interactive Software | Sunny Optical vs. CyberArk Software |
Amphenol vs. Hon Hai Precision | Amphenol vs. Samsung SDI Co | Amphenol vs. Murata Manufacturing Co | Amphenol vs. Corning Incorporated |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |