Correlation Between Martin Marietta and Sony Group
Can any of the company-specific risk be diversified away by investing in both Martin Marietta 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 Martin Marietta and Sony Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Marietta Materials and Sony Group Corp, you can compare the effects of market volatilities on Martin Marietta 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 Martin Marietta with a short position of Sony Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Marietta and Sony Group.
Diversification Opportunities for Martin Marietta and Sony Group
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Martin and Sony is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Martin Marietta Materials 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 Martin Marietta 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 Martin Marietta Materials 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 Martin Marietta i.e., Martin Marietta and Sony Group go up and down completely randomly.
Pair Corralation between Martin Marietta and Sony Group
Assuming the 90 days trading horizon Martin Marietta is expected to generate 5.69 times less return on investment than Sony Group. But when comparing it to its historical volatility, Martin Marietta Materials is 5.33 times less risky than Sony Group. It trades about 0.07 of its potential returns per unit of risk. Sony Group Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 347.00 in Sony Group Corp on November 9, 2024 and sell it today you would earn a total of 1,853 from holding Sony Group Corp or generate 534.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Marietta Materials vs. Sony Group Corp
Performance |
| Timeline |
| Martin Marietta Materials |
| Sony Group Corp |
Martin Marietta and Sony Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Marietta and Sony Group
The main advantage of trading using opposite Martin Marietta and Sony Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Marietta 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.| Martin Marietta vs. Apple Inc | Martin Marietta vs. Apple Inc | Martin Marietta vs. Apple Inc | Martin Marietta vs. Apple Inc |
| Sony Group vs. YATRA ONLINE DL 0001 | Sony Group vs. GREENX METALS LTD | Sony Group vs. SERI INDUSTRIAL EO | Sony Group vs. CarsalesCom |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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