Correlation Between Sony and G Collado
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By analyzing existing cross correlation between Sony Group and G Collado SAB, you can compare the effects of market volatilities on Sony and G Collado 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 with a short position of G Collado. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony and G Collado.
Diversification Opportunities for Sony and G Collado
Poor diversification
The 3 months correlation between Sony and COLLADO is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group and G Collado SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G Collado SAB and Sony 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 are associated (or correlated) with G Collado. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G Collado SAB has no effect on the direction of Sony i.e., Sony and G Collado go up and down completely randomly.
Pair Corralation between Sony and G Collado
Assuming the 90 days trading horizon Sony Group is expected to generate 8.81 times more return on investment than G Collado. However, Sony is 8.81 times more volatile than G Collado SAB. It trades about 0.05 of its potential returns per unit of risk. G Collado SAB is currently generating about 0.0 per unit of risk. If you would invest 30,600 in Sony Group on September 12, 2024 and sell it today you would earn a total of 13,600 from holding Sony Group or generate 44.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.98% |
| Values | Daily Returns |
Sony Group vs. G Collado SAB
Performance |
| Timeline |
| Sony Group |
| G Collado SAB |
Sony and G Collado Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sony and G Collado
The main advantage of trading using opposite Sony and G Collado positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony position performs unexpectedly, G Collado 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 G Collado will offset losses from the drop in G Collado's long position.The idea behind Sony Group and G Collado SAB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| G Collado vs. Grupo Hotelero Santa | G Collado vs. Cognizant Technology Solutions | G Collado vs. Micron Technology | G Collado vs. CVS Health |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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