Correlation Between Sony and La Comer
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By analyzing existing cross correlation between Sony Group and La Comer SAB, you can compare the effects of market volatilities on Sony and La Comer 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 La Comer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony and La Comer.
Diversification Opportunities for Sony and La Comer
Pay attention - limited upside
The 3 months correlation between Sony and LACOMERUBC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group and La Comer SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Comer 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 La Comer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Comer SAB has no effect on the direction of Sony i.e., Sony and La Comer go up and down completely randomly.
Pair Corralation between Sony and La Comer
Assuming the 90 days trading horizon Sony Group is expected to generate 0.86 times more return on investment than La Comer. However, Sony Group is 1.17 times less risky than La Comer. It trades about 0.49 of its potential returns per unit of risk. La Comer SAB is currently generating about -0.13 per unit of risk. If you would invest 38,100 in Sony Group on September 15, 2024 and sell it today you would earn a total of 5,800 from holding Sony Group or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sony Group vs. La Comer SAB
Performance |
| Timeline |
| Sony Group |
| La Comer SAB |
Sony and La Comer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sony and La Comer
The main advantage of trading using opposite Sony and La Comer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony position performs unexpectedly, La Comer 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 La Comer will offset losses from the drop in La Comer's long position.The idea behind Sony Group and La Comer 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.| La Comer vs. Grupo Comercial Chedraui | La Comer vs. Gentera SAB de | La Comer vs. El Puerto de | La Comer vs. Organizacin Soriana S |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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