Correlation Between Sony and AMETEK,
Can any of the company-specific risk be diversified away by investing in both Sony and AMETEK, 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 AMETEK, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sony Group and AMETEK,, you can compare the effects of market volatilities on Sony and AMETEK, 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 AMETEK,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony and AMETEK,.
Diversification Opportunities for Sony and AMETEK,
Poor diversification
The 3 months correlation between Sony and AMETEK, is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group and AMETEK, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMETEK, 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 AMETEK,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMETEK, has no effect on the direction of Sony i.e., Sony and AMETEK, go up and down completely randomly.
Pair Corralation between Sony and AMETEK,
Assuming the 90 days trading horizon Sony Group is expected to generate 28.77 times more return on investment than AMETEK,. However, Sony is 28.77 times more volatile than AMETEK,. It trades about 0.1 of its potential returns per unit of risk. AMETEK, is currently generating about 0.06 per unit of risk. If you would invest 8,695 in Sony Group on October 23, 2024 and sell it today you would earn a total of 3,650 from holding Sony Group or generate 41.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.79% |
Values | Daily Returns |
Sony Group vs. AMETEK,
Performance |
Timeline |
Sony Group |
AMETEK, |
Sony and AMETEK, Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sony and AMETEK,
The main advantage of trading using opposite Sony and AMETEK, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony position performs unexpectedly, AMETEK, 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 AMETEK, will offset losses from the drop in AMETEK,'s long position.Sony vs. Clover Health Investments, | Sony vs. salesforce inc | Sony vs. Align Technology | Sony vs. CVS Health |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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