Correlation Between Sony and Excelsior Alimentos

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Can any of the company-specific risk be diversified away by investing in both Sony and Excelsior Alimentos 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 Excelsior Alimentos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sony Group and Excelsior Alimentos SA, you can compare the effects of market volatilities on Sony and Excelsior Alimentos 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 Excelsior Alimentos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony and Excelsior Alimentos.

Diversification Opportunities for Sony and Excelsior Alimentos

SonyExcelsiorDiversified AwaySonyExcelsiorDiversified Away100%
-0.48
  Correlation Coefficient

Very good diversification

The 3 months correlation between Sony and Excelsior is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group and Excelsior Alimentos SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelsior Alimentos 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 Excelsior Alimentos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelsior Alimentos has no effect on the direction of Sony i.e., Sony and Excelsior Alimentos go up and down completely randomly.

Pair Corralation between Sony and Excelsior Alimentos

Assuming the 90 days trading horizon Sony Group is expected to under-perform the Excelsior Alimentos. In addition to that, Sony is 16.45 times more volatile than Excelsior Alimentos SA. It trades about -0.16 of its total potential returns per unit of risk. Excelsior Alimentos SA is currently generating about -0.23 per unit of volatility. If you would invest  7,849  in Excelsior Alimentos SA on October 26, 2024 and sell it today you would lose (29.00) from holding Excelsior Alimentos SA or give up 0.37% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy95.0%
ValuesDaily Returns

Sony Group  vs.  Excelsior Alimentos SA

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -50510152025
JavaScript chart by amCharts 3.21.15SNEC34 BAUH4
       Timeline  
Sony Group 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Sony Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Sony sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan100105110115120125130135
Excelsior Alimentos 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Excelsior Alimentos SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Excelsior Alimentos is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan747576777879

Sony and Excelsior Alimentos Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.28-4.71-3.13-1.55-0.011.643.335.026.728.41 1234567
JavaScript chart by amCharts 3.21.15SNEC34 BAUH4
       Returns  

Pair Trading with Sony and Excelsior Alimentos

The main advantage of trading using opposite Sony and Excelsior Alimentos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony position performs unexpectedly, Excelsior Alimentos 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 Excelsior Alimentos will offset losses from the drop in Excelsior Alimentos' long position.
The idea behind Sony Group and Excelsior Alimentos SA 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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