This module allows you to analyze existing cross correlation between Apple Inc and Sony Corporation. You can compare the effects of market volatilities on Apple and Sony 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 Apple with a short position of Sony. See also your portfolio center
. Please also check ongoing floating volatility patterns of Apple
Apple Inc. vs Sony Corp.
Given the investment horizon of 30 days, Apple is expected to generate 3.67 times less return on investment than Sony. But when comparing it to its historical volatility, Apple Inc is 1.95 times less risky than Sony. It trades about 0.08 of its potential returns per unit of risk. Sony Corporation is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 3,249 in Sony Corporation on March 25, 2017 and sell it today you would earn a total of 119.00 from holding Sony Corporation or generate 3.66% return on investment over 30 days.
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Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc. and Sony Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sony and Apple 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 Apple Inc are associated (or correlated) with Sony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony has no effect on the direction of Apple i.e. Apple and Sony go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Sony Corporation are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.