Correlation Between Sony and Gentera SAB
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By analyzing existing cross correlation between Sony Group and Gentera SAB de, you can compare the effects of market volatilities on Sony and Gentera SAB 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 Gentera SAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony and Gentera SAB.
Diversification Opportunities for Sony and Gentera SAB
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sony and Gentera is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group and Gentera SAB de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentera SAB de 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 Gentera SAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentera SAB de has no effect on the direction of Sony i.e., Sony and Gentera SAB go up and down completely randomly.
Pair Corralation between Sony and Gentera SAB
Assuming the 90 days trading horizon Sony Group is expected to generate 0.87 times more return on investment than Gentera SAB. However, Sony Group is 1.14 times less risky than Gentera SAB. It trades about 0.09 of its potential returns per unit of risk. Gentera SAB de is currently generating about 0.08 per unit of risk. If you would invest 30,160 in Sony Group on September 14, 2024 and sell it today you would earn a total of 14,340 from holding Sony Group or generate 47.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.38% |
| Values | Daily Returns |
Sony Group vs. Gentera SAB de
Performance |
| Timeline |
| Sony Group |
| Gentera SAB de |
Sony and Gentera SAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sony and Gentera SAB
The main advantage of trading using opposite Sony and Gentera SAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony position performs unexpectedly, Gentera SAB 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 Gentera SAB will offset losses from the drop in Gentera SAB's long position.The idea behind Sony Group and Gentera SAB de 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.| Gentera SAB vs. Samsung Electronics Co | Gentera SAB vs. Sony Group | Gentera SAB vs. Taiwan Semiconductor Manufacturing | Gentera SAB vs. Alibaba Group Holding |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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