diversifiable risk of combining Sony Group and GREENX METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sony Group Corp and GREENX METALS LTD, you can compare the effects of market volatilities on Sony Group and GREENX METALS 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 Group with a short position of GREENX METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony Group and GREENX METALS.
Diversification Opportunities for Sony Group and GREENX METALS
Pair Corralation between Sony Group and GREENX METALS
Assuming the 90 days trading horizon Sony Group Corp is expected to under-perform the GREENX METALS. But the stock apears to be less risky and, when comparing its historical volatility, Sony Group Corp is 3.14 times less risky than GREENX METALS. The stock trades about -0.38 of its potential returns per unit of risk. The GREENX METALS LTD is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 63.00 in GREENX METALS LTD on November 30, 2023 and sell it today you would lose (3.00) from holding GREENX METALS LTD or give up 4.76% of portfolio value over 90 days.
Sony Group Corp vs. GREENX METALS LTD
Sony Group and GREENX METALS Volatility Contrast
Pair Trading with Sony Group and GREENX METALSThe main advantage of trading using opposite Sony Group and GREENX METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony Group position performs unexpectedly, GREENX METALS 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 GREENX METALS will offset losses from the drop in GREENX METALS's long position. The idea behind Sony Group Corp and GREENX METALS LTD 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.
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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