Correlation Between Sonida Senior and Triumph
Can any of the company-specific risk be diversified away by investing in both Sonida Senior and Triumph 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 Triumph 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 Triumph Group, you can compare the effects of market volatilities on Sonida Senior and Triumph 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 Triumph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and Triumph.
Diversification Opportunities for Sonida Senior and Triumph
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sonida and Triumph is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and Triumph Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Group 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 Triumph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Group has no effect on the direction of Sonida Senior i.e., Sonida Senior and Triumph go up and down completely randomly.
Pair Corralation between Sonida Senior and Triumph
If you would invest 2.50 in Triumph Group on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Triumph Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 1.56% |
| Values | Daily Returns |
Sonida Senior Living vs. Triumph Group
Performance |
| Timeline |
| Sonida Senior Living |
| Triumph Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sonida Senior and Triumph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and Triumph
The main advantage of trading using opposite Sonida Senior and Triumph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior position performs unexpectedly, Triumph 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 Triumph will offset losses from the drop in Triumph's long position.| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding Corp |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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