Correlation Between Sony Group and Vuzix Corp
Can any of the company-specific risk be diversified away by investing in both Sony Group and Vuzix Corp 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 Vuzix Corp 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 Vuzix Corp Cmn, you can compare the effects of market volatilities on Sony Group and Vuzix Corp 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 Vuzix Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony Group and Vuzix Corp.
Diversification Opportunities for Sony Group and Vuzix Corp
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sony and Vuzix is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group Corp and Vuzix Corp Cmn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vuzix Corp Cmn 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 Vuzix Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vuzix Corp Cmn has no effect on the direction of Sony Group i.e., Sony Group and Vuzix Corp go up and down completely randomly.
Pair Corralation between Sony Group and Vuzix Corp
Given the investment horizon of 90 days Sony Group is expected to generate 7.16 times less return on investment than Vuzix Corp. But when comparing it to its historical volatility, Sony Group Corp is 4.88 times less risky than Vuzix Corp. It trades about 0.18 of its potential returns per unit of risk. Vuzix Corp Cmn is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest 130.00 in Vuzix Corp Cmn on August 28, 2024 and sell it today you would earn a total of 95.00 from holding Vuzix Corp Cmn or generate 73.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sony Group Corp vs. Vuzix Corp Cmn
Performance |
| Timeline |
| Sony Group Corp |
| Vuzix Corp Cmn |
Sony Group and Vuzix Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sony Group and Vuzix Corp
The main advantage of trading using opposite Sony Group and Vuzix Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony Group position performs unexpectedly, Vuzix Corp 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 Vuzix Corp will offset losses from the drop in Vuzix Corp's long position.| Sony Group vs. Universal Electronics | Sony Group vs. Vizio Holding Corp | Sony Group vs. VOXX International | Sony Group vs. Samsung Electronics Co |
| Vuzix Corp vs. VOXX International | Vuzix Corp vs. LG Display Co | Vuzix Corp vs. Wearable Devices | Vuzix Corp vs. Universal Electronics |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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