Correlation Between Sony Group and UTime
Can any of the company-specific risk be diversified away by investing in both Sony Group and UTime 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 UTime 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 UTime Limited, you can compare the effects of market volatilities on Sony Group and UTime 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 UTime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony Group and UTime.
Diversification Opportunities for Sony Group and UTime
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sony and UTime is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group Corp and UTime Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UTime 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 UTime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UTime Limited has no effect on the direction of Sony Group i.e., Sony Group and UTime go up and down completely randomly.
Pair Corralation between Sony Group and UTime
Given the investment horizon of 90 days Sony Group Corp is expected to generate 0.45 times more return on investment than UTime. However, Sony Group Corp is 2.24 times less risky than UTime. It trades about 0.21 of its potential returns per unit of risk. UTime Limited is currently generating about -0.19 per unit of risk. If you would invest 2,252 in Sony Group Corp on December 6, 2024 and sell it today you would earn a total of 188.00 from holding Sony Group Corp or generate 8.35% 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. UTime Limited
Performance |
| Timeline |
| Sony Group Corp |
| UTime Limited |
Sony Group and UTime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sony Group and UTime
The main advantage of trading using opposite Sony Group and UTime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony Group position performs unexpectedly, UTime 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 UTime will offset losses from the drop in UTime's long position.| Sony Group vs. Universal Electronics | Sony Group vs. VOXX International | Sony Group vs. Samsung Electronics Co | Sony Group vs. Sharp |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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