Pair Correlation Between Apple and Sony

This module allows you to analyze existing cross correlation between Apple Inc and Sony Corporation. You can compare the effects of market volatilities on Apple and Sony 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 Apple with a short position of Sony. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and Sony.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Apple Inc.  vs   Sony Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple Inc is expected to generate 1.86 times more return on investment than Sony. However, Apple is 1.86 times more volatile than Sony Corporation. It trades about 0.26 of its potential returns per unit of risk. Sony Corporation is currently generating about 0.34 per unit of risk. If you would invest  14,362  in Apple Inc on April 24, 2017 and sell it today you would earn a total of  1,018  from holding Apple Inc or generate 7.09% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Apple and Sony
0.92

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy95.65%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc. and Sony Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Sony and Apple 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 Apple Inc are associated (or correlated) with Sony. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony has no effect on the direction of Apple i.e. Apple and Sony go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Apple Inc

  
18 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.

Sony

  
23 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Sony Corporation are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.