Correlation Between GODM Investments and Suny Cellular

Can any of the company-specific risk be diversified away by investing in both GODM Investments and Suny Cellular 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 GODM Investments and Suny Cellular into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GODM Investments and Suny Cellular Communication, you can compare the effects of market volatilities on GODM Investments and Suny Cellular 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 GODM Investments with a short position of Suny Cellular. Check out your portfolio center. Please also check ongoing floating volatility patterns of GODM Investments and Suny Cellular.

Diversification Opportunities for GODM Investments and Suny Cellular

-0.54

Correlation Coefficient

GODM Investments  Suny Cellular

Excellent diversification

The 3 months correlation between GODM and Suny is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding GODM Investments and Suny Cellular Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suny Cellular Commun and GODM Investments 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 GODM Investments are associated (or correlated) with Suny Cellular. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suny Cellular Commun has no effect on the direction of GODM Investments i.e., GODM Investments and Suny Cellular go up and down completely randomly.

Pair Corralation between GODM Investments and Suny Cellular

Assuming the 90 days trading horizon GODM Investments is expected to under-perform the Suny Cellular. In addition to that, GODM Investments is 1.04 times more volatile than Suny Cellular Communication. It trades about -0.2 of its total potential returns per unit of risk. Suny Cellular Communication is currently generating about 0.27 per unit of volatility. If you would invest  10,450  in Suny Cellular Communication on August 29, 2024 and sell it today you would earn a total of  1,300  from holding Suny Cellular Communication or generate 12.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

GODM Investments  vs.  Suny Cellular Communication

GODM Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GODM Investments has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Suny Cellular Commun

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Suny Cellular Communication are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Suny Cellular sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GODM Investments and Suny Cellular

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

The idea behind GODM Investments and Suny Cellular Communication 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..