Correlation Between Sun Communities and Kossan Rubber

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Can any of the company-specific risk be diversified away by investing in both Sun Communities and Kossan Rubber 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 Sun Communities and Kossan Rubber into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Communities and Kossan Rubber Industries, you can compare the effects of market volatilities on Sun Communities and Kossan Rubber 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 Sun Communities with a short position of Kossan Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Communities and Kossan Rubber.

Diversification Opportunities for Sun Communities and Kossan Rubber

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Sun and Kossan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Communities and Kossan Rubber Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kossan Rubber Industries and Sun Communities 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 Sun Communities are associated (or correlated) with Kossan Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kossan Rubber Industries has no effect on the direction of Sun Communities i.e., Sun Communities and Kossan Rubber go up and down completely randomly.

Pair Corralation between Sun Communities and Kossan Rubber

If you would invest  33.00  in Kossan Rubber Industries on September 9, 2025 and sell it today you would earn a total of  0.00  from holding Kossan Rubber Industries or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Sun Communities  vs.  Kossan Rubber Industries

 Performance 
       Timeline  
Sun Communities 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Sun Communities has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Sun Communities is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
Kossan Rubber Industries 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Kossan Rubber Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Kossan Rubber is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Sun Communities and Kossan Rubber Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sun Communities and Kossan Rubber

The main advantage of trading using opposite Sun Communities and Kossan Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Communities position performs unexpectedly, Kossan Rubber 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 Kossan Rubber will offset losses from the drop in Kossan Rubber's long position.
The idea behind Sun Communities and Kossan Rubber Industries 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.
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.

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