Correlation Between Sony and Investin Optimal

Can any of the company-specific risk be diversified away by investing in both Sony and Investin Optimal 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 Sony and Investin Optimal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sony Group and Investin Optimal VerdensIndex, you can compare the effects of market volatilities on Sony and Investin Optimal 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 Sony with a short position of Investin Optimal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony and Investin Optimal.

Diversification Opportunities for Sony and Investin Optimal

0.0

Correlation Coefficient

Sony  Investin Optimal

Pay attention - limited upside

The 3 months correlation between Sony and Investin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group and Investin Optimal VerdensIndex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investin Optimal Ver and Sony 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 Sony Group are associated (or correlated) with Investin Optimal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investin Optimal Ver has no effect on the direction of Sony i.e., Sony and Investin Optimal go up and down completely randomly.

Pair Corralation between Sony and Investin Optimal

If you would invest (100.00) in Sony Group on January 20, 2024 and sell it today you would earn a total of  100.00  from holding Sony Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sony Group  vs.  Investin Optimal VerdensIndex

Sony Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sony Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Sony is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Investin Optimal Ver

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Investin Optimal VerdensIndex are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Investin Optimal is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sony and Investin Optimal

The main advantage of trading using opposite Sony and Investin Optimal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony position performs unexpectedly, Investin Optimal 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 Investin Optimal will offset losses from the drop in Investin Optimal's long position.

The idea behind Sony Group and Investin Optimal VerdensIndex pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.