Correlation Between Singing Machine and Sony
Can any of the company-specific risk be diversified away by investing in both Singing Machine and Sony 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 Singing Machine and Sony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singing Machine and Sony Group, you can compare the effects of market volatilities on Singing Machine 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 Singing Machine with a short position of Sony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singing Machine and Sony.
Diversification Opportunities for Singing Machine and Sony
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Singing and Sony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Singing Machine and Sony Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group and Singing Machine 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 Singing Machine 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 Group has no effect on the direction of Singing Machine i.e., Singing Machine and Sony go up and down completely randomly.
Pair Corralation between Singing Machine and Sony
If you would invest (100.00) in Sony Group on January 18, 2024 and sell it today you would earn a total of 100.00 from holding Sony Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singing Machine vs. Sony Group
Performance |
| Timeline |
| Singing Machine |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sony Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Singing Machine and Sony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singing Machine and Sony
The main advantage of trading using opposite Singing Machine and Sony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singing Machine position performs unexpectedly, Sony 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 Sony will offset losses from the drop in Sony's long position.| Singing Machine vs. The Wendys Co | Singing Machine vs. Dominos Pizza | Singing Machine vs. BJs Restaurants | Singing Machine vs. Rave Restaurant Group |
| Sony vs. Beyond Inc | Sony vs. Olympic Steel | Sony vs. Willscot Mobile Mini | Sony vs. Asbury Automotive Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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