Correlation Between CONSUMERS and Sonida Senior
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By analyzing existing cross correlation between CONSUMERS ENERGY 325 and Sonida Senior Living, you can compare the effects of market volatilities on CONSUMERS and Sonida Senior 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 CONSUMERS with a short position of Sonida Senior. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSUMERS and Sonida Senior.
Diversification Opportunities for CONSUMERS and Sonida Senior
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between CONSUMERS and Sonida is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding CONSUMERS ENERGY 325 and Sonida Senior Living in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonida Senior Living and CONSUMERS 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 CONSUMERS ENERGY 325 are associated (or correlated) with Sonida Senior. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonida Senior Living has no effect on the direction of CONSUMERS i.e., CONSUMERS and Sonida Senior go up and down completely randomly.
Pair Corralation between CONSUMERS and Sonida Senior
Assuming the 90 days trading horizon CONSUMERS ENERGY 325 is expected to generate 20.73 times more return on investment than Sonida Senior. However, CONSUMERS is 20.73 times more volatile than Sonida Senior Living. It trades about 0.09 of its potential returns per unit of risk. Sonida Senior Living is currently generating about 0.08 per unit of risk. If you would invest 7,349 in CONSUMERS ENERGY 325 on September 12, 2024 and sell it today you would earn a total of 145.00 from holding CONSUMERS ENERGY 325 or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 57.83% |
| Values | Daily Returns |
CONSUMERS ENERGY 325 vs. Sonida Senior Living
Performance |
| Timeline |
| CONSUMERS ENERGY 325 |
| Sonida Senior Living |
CONSUMERS and Sonida Senior Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSUMERS and Sonida Senior
The main advantage of trading using opposite CONSUMERS and Sonida Senior positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSUMERS position performs unexpectedly, Sonida Senior 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 Sonida Senior will offset losses from the drop in Sonida Senior's long position.| CONSUMERS vs. Sonida Senior Living | CONSUMERS vs. Valneva SE ADR | CONSUMERS vs. SunLink Health Systems | CONSUMERS vs. NetEase |
| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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