Correlation Between SVB Financial and Sony
Can any of the company-specific risk be diversified away by investing in both SVB Financial 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 SVB Financial and Sony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVB Financial Group and Sony Group, you can compare the effects of market volatilities on SVB Financial 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 SVB Financial with a short position of Sony. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVB Financial and Sony.
Diversification Opportunities for SVB Financial and Sony
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SVB and Sony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SVB Financial Group and Sony Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group and SVB Financial 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 SVB Financial Group 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 SVB Financial i.e., SVB Financial and Sony go up and down completely randomly.
Pair Corralation between SVB Financial and Sony
If you would invest 12,113 in Sony Group on December 1, 2024 and sell it today you would earn a total of 2,557 from holding Sony Group or generate 21.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SVB Financial Group vs. Sony Group
Performance |
Timeline |
SVB Financial Group |
Sony Group |
SVB Financial and Sony Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SVB Financial and Sony
The main advantage of trading using opposite SVB Financial and Sony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVB Financial 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.SVB Financial vs. Align Technology | SVB Financial vs. TechnipFMC plc | SVB Financial vs. Uber Technologies | SVB Financial vs. ZoomInfo Technologies |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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