Correlation Between Arrow Financial and Sonida Senior
Can any of the company-specific risk be diversified away by investing in both Arrow Financial and Sonida Senior 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 Arrow Financial and Sonida Senior into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Financial and Sonida Senior Living, you can compare the effects of market volatilities on Arrow Financial and Sonida Senior 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 Arrow Financial with a short position of Sonida Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Financial and Sonida Senior.
Diversification Opportunities for Arrow Financial and Sonida Senior
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arrow and Sonida is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Financial and Sonida Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonida Senior Living and Arrow 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 Arrow Financial are associated (or correlated) with Sonida Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonida Senior Living has no effect on the direction of Arrow Financial i.e., Arrow Financial and Sonida Senior go up and down completely randomly.
Pair Corralation between Arrow Financial and Sonida Senior
Given the investment horizon of 90 days Arrow Financial is expected to generate 4.96 times less return on investment than Sonida Senior. But when comparing it to its historical volatility, Arrow Financial is 2.09 times less risky than Sonida Senior. It trades about 0.02 of its potential returns per unit of risk. Sonida Senior Living is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,626 in Sonida Senior Living on August 26, 2024 and sell it today you would earn a total of 857.00 from holding Sonida Senior Living or generate 52.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Arrow Financial vs. Sonida Senior Living
Performance |
| Timeline |
| Arrow Financial |
| Sonida Senior Living |
Arrow Financial and Sonida Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arrow Financial and Sonida Senior
The main advantage of trading using opposite Arrow Financial and Sonida Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Financial position performs unexpectedly, Sonida Senior 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 Sonida Senior will offset losses from the drop in Sonida Senior's long position.| Arrow Financial vs. Heritage Commerce Corp | Arrow Financial vs. Westamerica Bancorporation | Arrow Financial vs. Heritage Financial | Arrow Financial vs. National Bankshares |
| Sonida Senior vs. Heartbeam | Sonida Senior vs. EUDA Health Holdings | Sonida Senior vs. Nutex Health | Sonida Senior vs. Healthcare Triangle |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |