Correlation Between Grupo Carso and Sony Group
Can any of the company-specific risk be diversified away by investing in both Grupo Carso 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 Grupo Carso and Sony Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and Sony Group Corp, you can compare the effects of market volatilities on Grupo Carso 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 Grupo Carso with a short position of Sony Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Sony Group.
Diversification Opportunities for Grupo Carso and Sony Group
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Grupo and Sony is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB 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 Grupo Carso 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 Grupo Carso SAB 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 Grupo Carso i.e., Grupo Carso and Sony Group go up and down completely randomly.
Pair Corralation between Grupo Carso and Sony Group
Assuming the 90 days horizon Grupo Carso SAB is expected to under-perform the Sony Group. But the stock apears to be less risky and, when comparing its historical volatility, Grupo Carso SAB is 1.28 times less risky than Sony Group. The stock trades about -0.03 of its potential returns per unit of risk. The Sony Group Corp is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,149 in Sony Group Corp on December 1, 2024 and sell it today you would earn a total of 261.00 from holding Sony Group Corp or generate 12.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grupo Carso SAB vs. Sony Group Corp
Performance |
| Timeline |
| Grupo Carso SAB |
| Sony Group Corp |
Grupo Carso and Sony Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Sony Group
The main advantage of trading using opposite Grupo Carso and Sony Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso 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.| Grupo Carso vs. ULTRA CLEAN HLDGS | Grupo Carso vs. MeVis Medical Solutions | Grupo Carso vs. Ultra Clean Holdings | Grupo Carso vs. Carnegie Clean Energy |
| Sony Group vs. MOVIE GAMES SA | Sony Group vs. Corsair Gaming | Sony Group vs. Addtech AB | Sony Group vs. FORTRESS BIOTECHPRFA 25 |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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