Correlation Between Sony Group and Trip Group
Can any of the company-specific risk be diversified away by investing in both Sony Group and Trip Group 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 Trip Group 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 Trip Group Limited, you can compare the effects of market volatilities on Sony Group and Trip Group 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 Trip Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony Group and Trip Group.
Diversification Opportunities for Sony Group and Trip Group
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sony and Trip is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group Corp and Trip Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trip Group Limited 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 Trip Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trip Group Limited has no effect on the direction of Sony Group i.e., Sony Group and Trip Group go up and down completely randomly.
Pair Corralation between Sony Group and Trip Group
Assuming the 90 days trading horizon Sony Group Corp is expected to generate 0.82 times more return on investment than Trip Group. However, Sony Group Corp is 1.22 times less risky than Trip Group. It trades about 0.27 of its potential returns per unit of risk. Trip Group Limited is currently generating about 0.11 per unit of risk. If you would invest 1,629 in Sony Group Corp on August 28, 2024 and sell it today you would earn a total of 220.00 from holding Sony Group Corp or generate 13.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sony Group Corp vs. Trip Group Limited
Performance |
| Timeline |
| Sony Group Corp |
| Trip Group Limited |
Sony Group and Trip Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sony Group and Trip Group
The main advantage of trading using opposite Sony Group and Trip Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony Group position performs unexpectedly, Trip Group 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 Trip Group will offset losses from the drop in Trip Group's long position.| Sony Group vs. CHINA EDUCATION GROUP | Sony Group vs. IDP EDUCATION LTD | Sony Group vs. G8 EDUCATION | Sony Group vs. SEI INVESTMENTS |
| Trip Group vs. INFORMATION SVC GRP | Trip Group vs. Stewart Information Services | Trip Group vs. Automatic Data Processing | Trip Group vs. Datadog |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |