Correlation Between SPORTING and CyberAgent

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

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

Diversification Opportunities for SPORTING and CyberAgent

-0.17

Correlation Coefficient

SPORTING  CyberAgent

Good diversification

The 3 months correlation between SPORTING and CyberAgent is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SPORTING and CyberAgent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CyberAgent and SPORTING 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 SPORTING are associated (or correlated) with CyberAgent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CyberAgent has no effect on the direction of SPORTING i.e., SPORTING and CyberAgent go up and down completely randomly.

Pair Corralation between SPORTING and CyberAgent

Assuming the 90 days trading horizon SPORTING is expected to under-perform the CyberAgent. In addition to that, SPORTING is 1.44 times more volatile than CyberAgent. It trades about -0.01 of its total potential returns per unit of risk. CyberAgent is currently generating about 0.14 per unit of volatility. If you would invest  725.00  in CyberAgent on April 21, 2025 and sell it today you would earn a total of  160.00  from holding CyberAgent or generate 22.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

SPORTING  vs.  CyberAgent

SPORTING

Risk-Adjusted Performance

Very Weak

Over the last 90 days SPORTING has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, SPORTING is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

CyberAgent

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CyberAgent are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CyberAgent reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SPORTING and CyberAgent

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

The idea behind SPORTING and CyberAgent 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.