Correlation Between Sonic Foundry and ECGI Holdings
Can any of the company-specific risk be diversified away by investing in both Sonic Foundry and ECGI Holdings 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 Sonic Foundry and ECGI Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonic Foundry and ECGI Holdings, you can compare the effects of market volatilities on Sonic Foundry and ECGI Holdings 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 Sonic Foundry with a short position of ECGI Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonic Foundry and ECGI Holdings.
Diversification Opportunities for Sonic Foundry and ECGI Holdings
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sonic and ECGI is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Sonic Foundry and ECGI Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECGI Holdings and Sonic Foundry 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 Sonic Foundry are associated (or correlated) with ECGI Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECGI Holdings has no effect on the direction of Sonic Foundry i.e., Sonic Foundry and ECGI Holdings go up and down completely randomly.
Pair Corralation between Sonic Foundry and ECGI Holdings
If you would invest 0.13 in ECGI Holdings on August 31, 2024 and sell it today you would lose (0.02) from holding ECGI Holdings or give up 15.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Sonic Foundry vs. ECGI Holdings
Performance |
| Timeline |
| Sonic Foundry |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ECGI Holdings |
Sonic Foundry and ECGI Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonic Foundry and ECGI Holdings
The main advantage of trading using opposite Sonic Foundry and ECGI Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonic Foundry position performs unexpectedly, ECGI Holdings 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 ECGI Holdings will offset losses from the drop in ECGI Holdings' long position.| Sonic Foundry vs. 01 Communique Laboratory | Sonic Foundry vs. LifeSpeak | Sonic Foundry vs. RESAAS Services | Sonic Foundry vs. RenoWorks Software |
| ECGI Holdings vs. Sonova Holding AG | ECGI Holdings vs. Medtronic PLC | ECGI Holdings vs. CONMED | ECGI Holdings vs. Glaukos Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |