Correlation Between Sonida Senior and Afentra PLC
Can any of the company-specific risk be diversified away by investing in both Sonida Senior and Afentra PLC 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 Afentra PLC 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 Afentra PLC, you can compare the effects of market volatilities on Sonida Senior and Afentra PLC 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 Afentra PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and Afentra PLC.
Diversification Opportunities for Sonida Senior and Afentra PLC
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sonida and Afentra is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and Afentra PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Afentra PLC 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 Afentra PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Afentra PLC has no effect on the direction of Sonida Senior i.e., Sonida Senior and Afentra PLC go up and down completely randomly.
Pair Corralation between Sonida Senior and Afentra PLC
If you would invest 2,524 in Sonida Senior Living on September 3, 2024 and sell it today you would earn a total of 82.00 from holding Sonida Senior Living or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Sonida Senior Living vs. Afentra PLC
Performance |
| Timeline |
| Sonida Senior Living |
| Afentra PLC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sonida Senior and Afentra PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and Afentra PLC
The main advantage of trading using opposite Sonida Senior and Afentra PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior position performs unexpectedly, Afentra PLC 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 Afentra PLC will offset losses from the drop in Afentra PLC's long position.| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. Acadia Healthcare |
| Afentra PLC vs. Jeld Wen Holding | Afentra PLC vs. Western Copper and | Afentra PLC vs. Sonida Senior Living | Afentra PLC vs. Parker Hannifin |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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