Correlation Between LOTTOTECH and SUN

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

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

Diversification Opportunities for LOTTOTECH and SUN

-0.45

Correlation Coefficient

LOTTOTECH  SUN

Very good diversification

The 3 months correlation between LOTTOTECH and SUN is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding LOTTOTECH LTD and SUN LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUN LIMITED and LOTTOTECH 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 LOTTOTECH LTD are associated (or correlated) with SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUN LIMITED has no effect on the direction of LOTTOTECH i.e., LOTTOTECH and SUN go up and down completely randomly.

Pair Corralation between LOTTOTECH and SUN

Assuming the 90 days trading horizon LOTTOTECH LTD is expected to under-perform the SUN. But the stock apears to be less risky and, when comparing its historical volatility, LOTTOTECH LTD is 2.45 times less risky than SUN. The stock trades about -0.14 of its potential returns per unit of risk. The SUN LIMITED is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  3,545  in SUN LIMITED on April 23, 2025 and sell it today you would earn a total of  255.00  from holding SUN LIMITED or generate 7.19% return on investment over 90 days.

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

LOTTOTECH LTD  vs.  SUN LIMITED

LOTTOTECH LTD

Risk-Adjusted Performance

Very Weak

Over the last 90 days LOTTOTECH LTD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

SUN LIMITED

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SUN LIMITED are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, SUN may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with LOTTOTECH and SUN

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

The idea behind LOTTOTECH LTD and SUN LIMITED 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.