Correlation Between GEROVA Financial and Sonida Senior
Can any of the company-specific risk be diversified away by investing in both GEROVA 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 GEROVA 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 GEROVA Financial Group and Sonida Senior Living, you can compare the effects of market volatilities on GEROVA 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 GEROVA Financial with a short position of Sonida Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of GEROVA Financial and Sonida Senior.
Diversification Opportunities for GEROVA Financial and Sonida Senior
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GEROVA and Sonida is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GEROVA Financial Group 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 GEROVA 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 GEROVA Financial Group 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 GEROVA Financial i.e., GEROVA Financial and Sonida Senior go up and down completely randomly.
Pair Corralation between GEROVA Financial and Sonida Senior
If you would invest 1,525 in Sonida Senior Living on September 3, 2024 and sell it today you would earn a total of 1,081 from holding Sonida Senior Living or generate 70.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 7.49% |
| Values | Daily Returns |
GEROVA Financial Group vs. Sonida Senior Living
Performance |
| Timeline |
| GEROVA Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sonida Senior Living |
GEROVA Financial and Sonida Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GEROVA Financial and Sonida Senior
The main advantage of trading using opposite GEROVA Financial and Sonida Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GEROVA 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.| GEROVA Financial vs. WPP PLC ADR | GEROVA Financial vs. Barrick Gold Corp | GEROVA Financial vs. BOS Better Online | GEROVA Financial vs. Stagwell |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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