Correlation Between Sonata Software and Global Health
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By analyzing existing cross correlation between Sonata Software Limited and Global Health Limited, you can compare the effects of market volatilities on Sonata Software and Global Health 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 Sonata Software with a short position of Global Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonata Software and Global Health.
Diversification Opportunities for Sonata Software and Global Health
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sonata and Global is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sonata Software Limited and Global Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Health Limited and Sonata Software 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 Sonata Software Limited are associated (or correlated) with Global Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Health Limited has no effect on the direction of Sonata Software i.e., Sonata Software and Global Health go up and down completely randomly.
Pair Corralation between Sonata Software and Global Health
Assuming the 90 days trading horizon Sonata Software Limited is expected to under-perform the Global Health. In addition to that, Sonata Software is 1.11 times more volatile than Global Health Limited. It trades about -0.17 of its total potential returns per unit of risk. Global Health Limited is currently generating about -0.06 per unit of volatility. If you would invest 107,515 in Global Health Limited on October 30, 2024 and sell it today you would lose (5,405) from holding Global Health Limited or give up 5.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonata Software Limited vs. Global Health Limited
Performance |
| Timeline |
| Sonata Software |
| Global Health Limited |
Sonata Software and Global Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonata Software and Global Health
The main advantage of trading using opposite Sonata Software and Global Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonata Software position performs unexpectedly, Global Health 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 Global Health will offset losses from the drop in Global Health's long position.| Sonata Software vs. Zydus Wellness Limited | Sonata Software vs. Advani Hotels Resorts | Sonata Software vs. SINCLAIRS HOTELS ORD | Sonata Software vs. Aster DM Healthcare |
| Global Health vs. ROUTE MOBILE LIMITED | Global Health vs. Computer Age Management | Global Health vs. Salzer Electronics Limited | Global Health vs. Paramount Communications Limited |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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