Correlation Between SkyCity Entertainment and Sonos
Can any of the company-specific risk be diversified away by investing in both SkyCity Entertainment and Sonos 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 SkyCity Entertainment and Sonos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SkyCity Entertainment Group and Sonos Inc, you can compare the effects of market volatilities on SkyCity Entertainment and Sonos 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 SkyCity Entertainment with a short position of Sonos. Check out your portfolio center. Please also check ongoing floating volatility patterns of SkyCity Entertainment and Sonos.
Diversification Opportunities for SkyCity Entertainment and Sonos
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SkyCity and Sonos is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding SkyCity Entertainment Group and Sonos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonos Inc and SkyCity Entertainment 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 SkyCity Entertainment Group are associated (or correlated) with Sonos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonos Inc has no effect on the direction of SkyCity Entertainment i.e., SkyCity Entertainment and Sonos go up and down completely randomly.
Pair Corralation between SkyCity Entertainment and Sonos
Assuming the 90 days horizon SkyCity Entertainment Group is expected to under-perform the Sonos. In addition to that, SkyCity Entertainment is 1.07 times more volatile than Sonos Inc. It trades about -0.05 of its total potential returns per unit of risk. Sonos Inc is currently generating about -0.02 per unit of volatility. If you would invest 2,121 in Sonos Inc on November 2, 2024 and sell it today you would lose (742.00) from holding Sonos Inc or give up 34.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.23% |
| Values | Daily Returns |
SkyCity Entertainment Group vs. Sonos Inc
Performance |
| Timeline |
| SkyCity Entertainment |
| Sonos Inc |
SkyCity Entertainment and Sonos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SkyCity Entertainment and Sonos
The main advantage of trading using opposite SkyCity Entertainment and Sonos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SkyCity Entertainment position performs unexpectedly, Sonos 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 Sonos will offset losses from the drop in Sonos' long position.| SkyCity Entertainment vs. Nagacorp | SkyCity Entertainment vs. Wynn Macau | SkyCity Entertainment vs. MGM China Holdings | SkyCity Entertainment vs. Table Trac |
| Sonos vs. LG Display Co | Sonos vs. Zepp Health Corp | Sonos vs. VOXX International | Sonos 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |