Correlation Between Sony and Energous
Can any of the company-specific risk be diversified away by investing in both Sony and Energous 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 Sony and Energous into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sony Group and Energous, you can compare the effects of market volatilities on Sony and Energous 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 Sony with a short position of Energous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony and Energous.
Diversification Opportunities for Sony and Energous
Pay attention - limited upside
The 3 months correlation between Sony and Energous is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group and Energous in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energous and Sony 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 Sony Group are associated (or correlated) with Energous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energous has no effect on the direction of Sony i.e., Sony and Energous go up and down completely randomly.
Pair Corralation between Sony and Energous
If you would invest (100.00) in Sony Group on January 25, 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 | 0.0% |
| Values | Daily Returns |
Sony Group vs. Energous
Performance |
| Timeline |
| Sony Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Energous |
Sony and Energous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sony and Energous
The main advantage of trading using opposite Sony and Energous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony position performs unexpectedly, Energous 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 Energous will offset losses from the drop in Energous' long position.The idea behind Sony Group and Energous 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.| Energous vs. AERWINS Technologies | Energous vs. Cepton Inc | Energous vs. SaverOne 2014 Ltd | Energous vs. Mind Technology Pref |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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