Correlation Between Sonida Senior and TEXTRON
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By analyzing existing cross correlation between Sonida Senior Living and TEXTRON INC 4, you can compare the effects of market volatilities on Sonida Senior and TEXTRON 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 TEXTRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and TEXTRON.
Diversification Opportunities for Sonida Senior and TEXTRON
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sonida and TEXTRON is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and TEXTRON INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEXTRON INC 4 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 TEXTRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEXTRON INC 4 has no effect on the direction of Sonida Senior i.e., Sonida Senior and TEXTRON go up and down completely randomly.
Pair Corralation between Sonida Senior and TEXTRON
Given the investment horizon of 90 days Sonida Senior Living is expected to under-perform the TEXTRON. In addition to that, Sonida Senior is 13.67 times more volatile than TEXTRON INC 4. It trades about -0.01 of its total potential returns per unit of risk. TEXTRON INC 4 is currently generating about 0.05 per unit of volatility. If you would invest 9,887 in TEXTRON INC 4 on October 25, 2024 and sell it today you would earn a total of 13.00 from holding TEXTRON INC 4 or generate 0.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Sonida Senior Living vs. TEXTRON INC 4
Performance |
| Timeline |
| Sonida Senior Living |
| TEXTRON INC 4 |
Sonida Senior and TEXTRON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and TEXTRON
The main advantage of trading using opposite Sonida Senior and TEXTRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior position performs unexpectedly, TEXTRON 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 TEXTRON will offset losses from the drop in TEXTRON'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 |
| TEXTRON vs. Columbia Sportswear | TEXTRON vs. G III Apparel Group | TEXTRON vs. Energold Drilling Corp | TEXTRON vs. Grounded People Apparel |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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