Correlation Between Sonida Senior and Hasbro
Can any of the company-specific risk be diversified away by investing in both Sonida Senior and Hasbro 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 Hasbro 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 Hasbro Inc, you can compare the effects of market volatilities on Sonida Senior and Hasbro 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 Hasbro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and Hasbro.
Diversification Opportunities for Sonida Senior and Hasbro
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sonida and Hasbro is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and Hasbro Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hasbro 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 Hasbro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hasbro Inc has no effect on the direction of Sonida Senior i.e., Sonida Senior and Hasbro go up and down completely randomly.
Pair Corralation between Sonida Senior and Hasbro
Given the investment horizon of 90 days Sonida Senior is expected to generate 7.31 times less return on investment than Hasbro. In addition to that, Sonida Senior is 2.46 times more volatile than Hasbro Inc. It trades about 0.0 of its total potential returns per unit of risk. Hasbro Inc is currently generating about 0.06 per unit of volatility. If you would invest 5,739 in Hasbro Inc on August 30, 2024 and sell it today you would earn a total of 650.00 from holding Hasbro Inc or generate 11.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonida Senior Living vs. Hasbro Inc
Performance |
| Timeline |
| Sonida Senior Living |
| Hasbro Inc |
Sonida Senior and Hasbro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and Hasbro
The main advantage of trading using opposite Sonida Senior and Hasbro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior position performs unexpectedly, Hasbro 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 Hasbro will offset losses from the drop in Hasbro's long position.| Sonida Senior vs. ReShape Lifesciences | Sonida Senior vs. Bone Biologics Corp | Sonida Senior vs. Tivic Health Systems | Sonida Senior vs. Nuwellis |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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