Correlation Between Sono Tek and Quanergy Systems
Can any of the company-specific risk be diversified away by investing in both Sono Tek and Quanergy Systems 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 Sono Tek and Quanergy Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sono Tek Corp and Quanergy Systems, you can compare the effects of market volatilities on Sono Tek and Quanergy Systems 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 Sono Tek with a short position of Quanergy Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sono Tek and Quanergy Systems.
Diversification Opportunities for Sono Tek and Quanergy Systems
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sono and Quanergy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sono Tek Corp and Quanergy Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quanergy Systems and Sono Tek 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 Sono Tek Corp are associated (or correlated) with Quanergy Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quanergy Systems has no effect on the direction of Sono Tek i.e., Sono Tek and Quanergy Systems go up and down completely randomly.
Pair Corralation between Sono Tek and Quanergy Systems
If you would invest 414.00 in Sono Tek Corp on August 31, 2024 and sell it today you would earn a total of 52.00 from holding Sono Tek Corp or generate 12.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Sono Tek Corp vs. Quanergy Systems
Performance |
| Timeline |
| Sono Tek Corp |
| Quanergy Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sono Tek and Quanergy Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sono Tek and Quanergy Systems
The main advantage of trading using opposite Sono Tek and Quanergy Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sono Tek position performs unexpectedly, Quanergy Systems 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 Quanergy Systems will offset losses from the drop in Quanergy Systems' long position.| Sono Tek vs. Novanta | Sono Tek vs. ESCO Technologies | Sono Tek vs. Vontier Corp | Sono Tek vs. Sensata Technologies Holding |
| Quanergy Systems vs. Highway Holdings Limited | Quanergy Systems vs. RBC Bearings Incorporated | Quanergy Systems vs. East Africa Metals | Quanergy Systems vs. Eldorado Gold Corp |
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.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |