Correlation Between Hubbell Incorporated and Sunny Optical
Can any of the company-specific risk be diversified away by investing in both Hubbell Incorporated 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 Hubbell Incorporated and Sunny Optical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hubbell Incorporated and Sunny Optical Technology, you can compare the effects of market volatilities on Hubbell Incorporated 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 Hubbell Incorporated with a short position of Sunny Optical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubbell Incorporated and Sunny Optical.
Diversification Opportunities for Hubbell Incorporated and Sunny Optical
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hubbell and Sunny is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hubbell Incorporated 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 Hubbell Incorporated 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 Hubbell Incorporated 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 Hubbell Incorporated i.e., Hubbell Incorporated and Sunny Optical go up and down completely randomly.
Pair Corralation between Hubbell Incorporated and Sunny Optical
Assuming the 90 days trading horizon Hubbell Incorporated is expected to generate 0.55 times more return on investment than Sunny Optical. However, Hubbell Incorporated is 1.82 times less risky than Sunny Optical. It trades about 0.07 of its potential returns per unit of risk. Sunny Optical Technology is currently generating about -0.03 per unit of risk. If you would invest 37,089 in Hubbell Incorporated on August 15, 2025 and sell it today you would earn a total of 2,511 from holding Hubbell Incorporated or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubbell Incorporated vs. Sunny Optical Technology
Performance |
| Timeline |
| Hubbell Incorporated |
| Sunny Optical Technology |
Hubbell Incorporated and Sunny Optical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubbell Incorporated and Sunny Optical
The main advantage of trading using opposite Hubbell Incorporated and Sunny Optical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubbell Incorporated 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.| Hubbell Incorporated vs. CONTAGIOUS GAMING INC | Hubbell Incorporated vs. Playmates Toys Limited | Hubbell Incorporated vs. GigaMedia | Hubbell Incorporated vs. Molson Coors Beverage |
| Sunny Optical vs. SIVERS SEMICONDUCTORS AB | Sunny Optical vs. NorAm Drilling AS | Sunny Optical vs. BANK HANDLOWY | Sunny Optical vs. Takara Holdings |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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