Correlation Between VOXX International and Sony Corp
Can any of the company-specific risk be diversified away by investing in both VOXX International and Sony Corp 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 VOXX International and Sony Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VOXX International and Sony Corp, you can compare the effects of market volatilities on VOXX International and Sony Corp 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 VOXX International with a short position of Sony Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of VOXX International and Sony Corp.
Diversification Opportunities for VOXX International and Sony Corp
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VOXX and Sony is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding VOXX International and Sony Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Corp and VOXX International 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 VOXX International are associated (or correlated) with Sony Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony Corp has no effect on the direction of VOXX International i.e., VOXX International and Sony Corp go up and down completely randomly.
Pair Corralation between VOXX International and Sony Corp
Given the investment horizon of 90 days VOXX International is expected to generate 461.49 times less return on investment than Sony Corp. But when comparing it to its historical volatility, VOXX International is 11.95 times less risky than Sony Corp. It trades about 0.0 of its potential returns per unit of risk. Sony Corp is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,680 in Sony Corp on August 26, 2024 and sell it today you would earn a total of 120.00 from holding Sony Corp or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.19% |
| Values | Daily Returns |
VOXX International vs. Sony Corp
Performance |
| Timeline |
| VOXX International |
| Sony Corp |
VOXX International and Sony Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VOXX International and Sony Corp
The main advantage of trading using opposite VOXX International and Sony Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VOXX International position performs unexpectedly, Sony Corp 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 Sony Corp will offset losses from the drop in Sony Corp's long position.| VOXX International vs. LG Display Co | VOXX International vs. Vizio Holding Corp | VOXX International vs. Turtle Beach Corp | VOXX International vs. Emerson Radio |
| Sony Corp vs. Apple Inc | Sony Corp vs. Xiaomi Corp | Sony Corp vs. Samsung Electronics Co | Sony Corp vs. LG Display Co |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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