Correlation Between Turtle Beach and Sony Group
Can any of the company-specific risk be diversified away by investing in both Turtle Beach 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 Turtle Beach and Sony Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turtle Beach Corp and Sony Group Corp, you can compare the effects of market volatilities on Turtle Beach 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 Turtle Beach with a short position of Sony Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turtle Beach and Sony Group.
Diversification Opportunities for Turtle Beach and Sony Group
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Turtle and Sony is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Turtle Beach Corp 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 Turtle Beach 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 Turtle Beach Corp 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 Turtle Beach i.e., Turtle Beach and Sony Group go up and down completely randomly.
Pair Corralation between Turtle Beach and Sony Group
Given the investment horizon of 90 days Turtle Beach Corp is expected to generate 1.22 times more return on investment than Sony Group. However, Turtle Beach is 1.22 times more volatile than Sony Group Corp. It trades about 0.58 of its potential returns per unit of risk. Sony Group Corp is currently generating about -0.1 per unit of risk. If you would invest 1,596 in Turtle Beach Corp on October 22, 2024 and sell it today you would earn a total of 151.00 from holding Turtle Beach Corp or generate 9.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 55.56% |
| Values | Daily Returns |
Turtle Beach Corp vs. Sony Group Corp
Performance |
| Timeline |
| Turtle Beach Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
| Sony Group Corp |
Turtle Beach and Sony Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turtle Beach and Sony Group
The main advantage of trading using opposite Turtle Beach and Sony Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turtle Beach 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.| Turtle Beach vs. VOXX International | Turtle Beach vs. LG Display Co | Turtle Beach vs. Emerson Radio | Turtle Beach vs. Universal Electronics |
| Sony Group vs. Universal Electronics | Sony Group vs. VOXX International | Sony Group vs. Samsung Electronics Co | Sony Group vs. Sharp |
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.
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