Correlation Between Sonida Senior and EA Series
Can any of the company-specific risk be diversified away by investing in both Sonida Senior and EA Series 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 EA Series 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 EA Series Trust, you can compare the effects of market volatilities on Sonida Senior and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and EA Series.
Diversification Opportunities for Sonida Senior and EA Series
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sonida and STXM is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Sonida Senior i.e., Sonida Senior and EA Series go up and down completely randomly.
Pair Corralation between Sonida Senior and EA Series
Given the investment horizon of 90 days Sonida Senior is expected to generate 3.22 times less return on investment than EA Series. In addition to that, Sonida Senior is 2.84 times more volatile than EA Series Trust. It trades about 0.04 of its total potential returns per unit of risk. EA Series Trust is currently generating about 0.34 per unit of volatility. If you would invest 2,595 in EA Series Trust on September 4, 2024 and sell it today you would earn a total of 215.00 from holding EA Series Trust or generate 8.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonida Senior Living vs. EA Series Trust
Performance |
| Timeline |
| Sonida Senior Living |
| EA Series Trust |
Sonida Senior and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and EA Series
The main advantage of trading using opposite Sonida Senior and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| Sonida Senior vs. Baxter International | Sonida Senior vs. West Pharmaceutical Services | Sonida Senior vs. ResMed Inc | Sonida Senior vs. The Cooper Companies, |
| EA Series vs. Sonida Senior Living | EA Series vs. The9 Ltd ADR | EA Series vs. VanEck Vectors ETF | EA Series vs. Nine Energy Service |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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