Correlation Between Sunny Optical and ASICS

Can any of the company-specific risk be diversified away by investing in both Sunny Optical and ASICS 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 ASICS 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 ASICS, you can compare the effects of market volatilities on Sunny Optical and ASICS 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 ASICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Optical and ASICS.

Diversification Opportunities for Sunny Optical and ASICS

0.59

Correlation Coefficient

Sunny Optical  ASICS

Very weak diversification

The 3 months correlation between Sunny and ASICS is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Optical Technology and ASICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASICS 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 ASICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASICS has no effect on the direction of Sunny Optical i.e., Sunny Optical and ASICS go up and down completely randomly.

Pair Corralation between Sunny Optical and ASICS

Assuming the 90 days horizon Sunny Optical Technology is expected to under-perform the ASICS. In addition to that, Sunny Optical is 1.33 times more volatile than ASICS. It trades about -0.2 of its total potential returns per unit of risk. ASICS is currently generating about -0.22 per unit of volatility. If you would invest  2,420  in ASICS on September 12, 2025 and sell it today you would lose (60.00) from holding ASICS or give up 2.48% of portfolio value over 90 days.

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

Sunny Optical Technology  vs.  ASICS

Sunny Optical Technology

Risk-Adjusted Performance

Weakest

Over the last 90 days Sunny Optical Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ASICS

Risk-Adjusted Performance

Weakest

Over the last 90 days ASICS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Sunny Optical and ASICS

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

The idea behind Sunny Optical Technology and ASICS 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.