Correlation Between Biomea Fusion and Sunny Optical
Can any of the company-specific risk be diversified away by investing in both Biomea Fusion and Sunny Optical 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 Biomea Fusion and Sunny Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biomea Fusion and Sunny Optical Technology, you can compare the effects of market volatilities on Biomea Fusion and Sunny Optical 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 Biomea Fusion with a short position of Sunny Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biomea Fusion and Sunny Optical.
Diversification Opportunities for Biomea Fusion and Sunny Optical
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biomea and Sunny is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Biomea Fusion and Sunny Optical Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Optical Technology and Biomea Fusion 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 Biomea Fusion are associated (or correlated) with Sunny Optical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Optical Technology has no effect on the direction of Biomea Fusion i.e., Biomea Fusion and Sunny Optical go up and down completely randomly.
Pair Corralation between Biomea Fusion and Sunny Optical
Given the investment horizon of 90 days Biomea Fusion is expected to under-perform the Sunny Optical. In addition to that, Biomea Fusion is 2.29 times more volatile than Sunny Optical Technology. It trades about -0.05 of its total potential returns per unit of risk. Sunny Optical Technology is currently generating about -0.08 per unit of volatility. If you would invest 987.00 in Sunny Optical Technology on September 11, 2025 and sell it today you would lose (160.00) from holding Sunny Optical Technology or give up 16.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biomea Fusion vs. Sunny Optical Technology
Performance |
| Timeline |
| Biomea Fusion |
| Sunny Optical Technology |
Biomea Fusion and Sunny Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biomea Fusion and Sunny Optical
The main advantage of trading using opposite Biomea Fusion and Sunny Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biomea Fusion position performs unexpectedly, Sunny Optical 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 Sunny Optical will offset losses from the drop in Sunny Optical's long position.| Biomea Fusion vs. Repare Therapeutics | Biomea Fusion vs. Cibus Global LLC | Biomea Fusion vs. Immunic | Biomea Fusion vs. Fractyl Health, Common |
| Sunny Optical vs. BYD Electronic | Sunny Optical vs. BYD Electronic | Sunny Optical vs. Ibiden CoLtd | Sunny Optical vs. Oracle Japan |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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