Correlation Between Monster Beverage and Sony
Can any of the company-specific risk be diversified away by investing in both Monster Beverage and Sony 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 Monster Beverage and Sony into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Monster Beverage and Sony Group, you can compare the effects of market volatilities on Monster Beverage and Sony 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 Monster Beverage with a short position of Sony. Check out your portfolio center. Please also check ongoing floating volatility patterns of Monster Beverage and Sony.
Diversification Opportunities for Monster Beverage and Sony
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Monster and Sony is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Monster Beverage and Sony Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group and Monster Beverage 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 Monster Beverage are associated (or correlated) with Sony. 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 has no effect on the direction of Monster Beverage i.e., Monster Beverage and Sony go up and down completely randomly.
Pair Corralation between Monster Beverage and Sony
Assuming the 90 days trading horizon Monster Beverage is expected to generate 0.97 times more return on investment than Sony. However, Monster Beverage is 1.03 times less risky than Sony. It trades about -0.07 of its potential returns per unit of risk. Sony Group is currently generating about -0.17 per unit of risk. If you would invest 3,912 in Monster Beverage on October 12, 2024 and sell it today you would lose (100.00) from holding Monster Beverage or give up 2.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Monster Beverage vs. Sony Group
Performance |
| Timeline |
| Monster Beverage |
| Sony Group |
Monster Beverage and Sony Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Monster Beverage and Sony
The main advantage of trading using opposite Monster Beverage and Sony positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Monster Beverage position performs unexpectedly, Sony 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 will offset losses from the drop in Sony's long position.| Monster Beverage vs. MAHLE Metal Leve | Monster Beverage vs. Charter Communications | Monster Beverage vs. Clover Health Investments, | Monster Beverage vs. Marfrig Global Foods |
| Sony vs. PENN Entertainment, | Sony vs. ON Semiconductor | Sony vs. Metalurgica Gerdau SA | Sony vs. Monster Beverage |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |