Correlation Between Sunworks and Lufax Holding

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

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

Diversification Opportunities for Sunworks and Lufax Holding

0.0

Correlation Coefficient

Sunworks  Lufax Holding

Pay attention - limited upside

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

Pair Corralation between Sunworks and Lufax Holding

If you would invest (100.00) in Sunworks on May 4, 2025 and sell it today you would earn a total of  100.00  from holding Sunworks or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sunworks  vs.  Lufax Holding

Sunworks

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sunworks has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Sunworks is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Lufax Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lufax Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Lufax Holding is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Sunworks and Lufax Holding

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

The idea behind Sunworks and Lufax Holding 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.