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 under-perform the Sony. But the stock apears to be less risky and, when comparing its historical volatility, Apple Inc is 1.26 times less risky than Sony. The stock trades about -0.37 of its potential returns per unit of risk. The Sony Corporation is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest  3,848  in Sony Corporation on August 26, 2017 and sell it today you would lose (138.00)  from holding Sony Corporation or give up 3.59% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Apple and Sony
0.76

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor 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

  
0 

Risk-Adjusted Performance

Over the last 30 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Sony

  
0 

Risk-Adjusted Performance

Over the last 30 days Sony Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.