Correlation Between Sono Tek and SaverOne 2014
Can any of the company-specific risk be diversified away by investing in both Sono Tek and SaverOne 2014 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 SaverOne 2014 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 SaverOne 2014 Ltd, you can compare the effects of market volatilities on Sono Tek and SaverOne 2014 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 SaverOne 2014. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sono Tek and SaverOne 2014.
Diversification Opportunities for Sono Tek and SaverOne 2014
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sono and SaverOne is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sono Tek Corp and SaverOne 2014 Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaverOne 2014 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 SaverOne 2014. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaverOne 2014 has no effect on the direction of Sono Tek i.e., Sono Tek and SaverOne 2014 go up and down completely randomly.
Pair Corralation between Sono Tek and SaverOne 2014
Given the investment horizon of 90 days Sono Tek Corp is expected to generate 0.4 times more return on investment than SaverOne 2014. However, Sono Tek Corp is 2.5 times less risky than SaverOne 2014. It trades about 0.3 of its potential returns per unit of risk. SaverOne 2014 Ltd is currently generating about -0.27 per unit of risk. If you would invest 427.00 in Sono Tek Corp on September 2, 2024 and sell it today you would earn a total of 47.00 from holding Sono Tek Corp or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sono Tek Corp vs. SaverOne 2014 Ltd
Performance |
| Timeline |
| Sono Tek Corp |
| SaverOne 2014 |
Sono Tek and SaverOne 2014 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sono Tek and SaverOne 2014
The main advantage of trading using opposite Sono Tek and SaverOne 2014 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sono Tek position performs unexpectedly, SaverOne 2014 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 SaverOne 2014 will offset losses from the drop in SaverOne 2014's long position.| Sono Tek vs. Novanta | Sono Tek vs. ESCO Technologies | Sono Tek vs. Vontier Corp | Sono Tek vs. Sensata Technologies Holding |
| SaverOne 2014 vs. Kraken Robotics | SaverOne 2014 vs. Focus Universal | SaverOne 2014 vs. Nanalysis Scientific Corp | SaverOne 2014 vs. Mind Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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