Correlation Between Sonida Senior and Air T
Can any of the company-specific risk be diversified away by investing in both Sonida Senior and Air T 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 Sonida Senior and Air T into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and Air T Inc, you can compare the effects of market volatilities on Sonida Senior and Air T 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 Sonida Senior with a short position of Air T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and Air T.
Diversification Opportunities for Sonida Senior and Air T
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sonida and Air is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and Air T Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air T Inc and Sonida Senior 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 Sonida Senior Living are associated (or correlated) with Air T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air T Inc has no effect on the direction of Sonida Senior i.e., Sonida Senior and Air T go up and down completely randomly.
Pair Corralation between Sonida Senior and Air T
Given the investment horizon of 90 days Sonida Senior Living is expected to generate 1.21 times more return on investment than Air T. However, Sonida Senior is 1.21 times more volatile than Air T Inc. It trades about 0.04 of its potential returns per unit of risk. Air T Inc is currently generating about 0.01 per unit of risk. If you would invest 1,600 in Sonida Senior Living on August 30, 2024 and sell it today you would earn a total of 983.00 from holding Sonida Senior Living or generate 61.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sonida Senior Living vs. Air T Inc
Performance |
| Timeline |
| Sonida Senior Living |
| Air T Inc |
Sonida Senior and Air T Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and Air T
The main advantage of trading using opposite Sonida Senior and Air T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior position performs unexpectedly, Air T 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 Air T will offset losses from the drop in Air T's long position.| Sonida Senior vs. ReShape Lifesciences | Sonida Senior vs. Bone Biologics Corp | Sonida Senior vs. Tivic Health Systems | Sonida Senior vs. Nuwellis |
| Air T vs. Addentax Group Corp | Air T vs. Hub Group | Air T vs. Landstar System | Air T vs. JB Hunt Transport |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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