Correlation Between Sony Group and MR BRICOLAGE
Can any of the company-specific risk be diversified away by investing in both Sony Group and MR BRICOLAGE 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 Sony Group and MR BRICOLAGE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sony Group Corp and MR BRICOLAGE INH, you can compare the effects of market volatilities on Sony Group and MR BRICOLAGE 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 Sony Group with a short position of MR BRICOLAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony Group and MR BRICOLAGE.
Diversification Opportunities for Sony Group and MR BRICOLAGE
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sony and 4OL is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group Corp and MR BRICOLAGE INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MR BRICOLAGE INH and Sony Group 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 Sony Group Corp are associated (or correlated) with MR BRICOLAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MR BRICOLAGE INH has no effect on the direction of Sony Group i.e., Sony Group and MR BRICOLAGE go up and down completely randomly.
Pair Corralation between Sony Group and MR BRICOLAGE
Assuming the 90 days trading horizon Sony Group Corp is expected to generate 0.99 times more return on investment than MR BRICOLAGE. However, Sony Group Corp is 1.01 times less risky than MR BRICOLAGE. It trades about 0.33 of its potential returns per unit of risk. MR BRICOLAGE INH is currently generating about 0.08 per unit of risk. If you would invest 1,619 in Sony Group Corp on September 1, 2024 and sell it today you would earn a total of 278.00 from holding Sony Group Corp or generate 17.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sony Group Corp vs. MR BRICOLAGE INH
Performance |
| Timeline |
| Sony Group Corp |
| MR BRICOLAGE INH |
Sony Group and MR BRICOLAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sony Group and MR BRICOLAGE
The main advantage of trading using opposite Sony Group and MR BRICOLAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony Group position performs unexpectedly, MR BRICOLAGE 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 MR BRICOLAGE will offset losses from the drop in MR BRICOLAGE's long position.| Sony Group vs. Grupo Carso SAB | Sony Group vs. INTER CARS SA | Sony Group vs. Lion One Metals | Sony Group vs. Commercial Vehicle Group |
| MR BRICOLAGE vs. The Home Depot | MR BRICOLAGE vs. The Home Depot | MR BRICOLAGE vs. HORNBACH Baumarkt AG | MR BRICOLAGE vs. WICKES GROUP PLC |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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