Correlation Between Singing Machine and Sony Group
Can any of the company-specific risk be diversified away by investing in both Singing Machine 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 Singing Machine and Sony Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Singing Machine and Sony Group Corp, you can compare the effects of market volatilities on Singing Machine 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 Singing Machine with a short position of Sony Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singing Machine and Sony Group.
Diversification Opportunities for Singing Machine and Sony Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Singing and Sony is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding The Singing Machine 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 Singing Machine 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 The Singing Machine 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 Singing Machine i.e., Singing Machine and Sony Group go up and down completely randomly.
Pair Corralation between Singing Machine and Sony Group
Given the investment horizon of 90 days The Singing Machine is expected to under-perform the Sony Group. In addition to that, Singing Machine is 2.9 times more volatile than Sony Group Corp. It trades about -0.33 of its total potential returns per unit of risk. Sony Group Corp is currently generating about 0.18 per unit of volatility. If you would invest 1,775 in Sony Group Corp on August 27, 2024 and sell it today you would earn a total of 167.00 from holding Sony Group Corp or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
The Singing Machine vs. Sony Group Corp
Performance |
| Timeline |
| Singing Machine |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Sony Group Corp |
Singing Machine and Sony Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singing Machine and Sony Group
The main advantage of trading using opposite Singing Machine and Sony Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singing Machine 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.| Singing Machine vs. Koss Corporation | Singing Machine vs. Emerson Radio | Singing Machine vs. Wearable Devices | Singing Machine vs. Zepp Health Corp |
| Sony Group vs. Universal Electronics | Sony Group vs. Vizio Holding Corp | Sony Group vs. VOXX International | Sony Group vs. Samsung Electronics Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |