Correlation Between EPlay Digital and Sony Group
Can any of the company-specific risk be diversified away by investing in both EPlay Digital 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 EPlay Digital and Sony Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ePlay Digital and Sony Group Corp, you can compare the effects of market volatilities on EPlay Digital 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 EPlay Digital with a short position of Sony Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPlay Digital and Sony Group.
Diversification Opportunities for EPlay Digital and Sony Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPlay and Sony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ePlay Digital 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 EPlay Digital 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 ePlay Digital 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 EPlay Digital i.e., EPlay Digital and Sony Group go up and down completely randomly.
Pair Corralation between EPlay Digital and Sony Group
If you would invest 2,009 in Sony Group Corp on November 6, 2024 and sell it today you would earn a total of 91.00 from holding Sony Group Corp or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ePlay Digital vs. Sony Group Corp
Performance |
| Timeline |
| ePlay Digital |
| Sony Group Corp |
EPlay Digital and Sony Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPlay Digital and Sony Group
The main advantage of trading using opposite EPlay Digital and Sony Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPlay Digital 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.| EPlay Digital vs. Sunny Optical Technology | EPlay Digital vs. ASURE SOFTWARE | EPlay Digital vs. Casio Computer CoLtd | EPlay Digital vs. AECOM TECHNOLOGY |
| Sony Group vs. Synovus Financial Corp | Sony Group vs. Chiba Bank | Sony Group vs. HEALTHSTREAM | Sony Group vs. Virtu Financial |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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