Correlation Between Koss and Sony Group

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

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

Diversification Opportunities for Koss and Sony Group

-0.75

Correlation Coefficient

Koss  Sony Group

Pay attention - limited upside

The 3 months correlation between Koss and Sony is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Koss Corp. and Sony Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group Corp and Koss 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 Koss Corporation are associated (or correlated) with Sony Group. 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 Corp has no effect on the direction of Koss i.e., Koss and Sony Group go up and down completely randomly.

Pair Corralation between Koss and Sony Group

Given the investment horizon of 90 days Koss Corporation is expected to under-perform the Sony Group. In addition to that, Koss is 2.39 times more volatile than Sony Group Corp. It trades about -0.17 of its total potential returns per unit of risk. Sony Group Corp is currently generating about 0.17 per unit of volatility. If you would invest  2,146  in Sony Group Corp on December 27, 2024 and sell it today you would earn a total of  418.00  from holding Sony Group Corp or generate 19.48% return on investment over 90 days.

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

Koss Corp.  vs.  Sony Group Corp

Koss

Risk-Adjusted Performance

Very Weak

Over the last 90 days Koss Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Sony Group Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sony Group Corp are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Sony Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Koss and Sony Group

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

The idea behind Koss Corporation and Sony Group Corp 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 CEOs Directory module to screen CEOs from public companies around the world.