Correlation Between Sony and PHOSAGRO PJSC

By analyzing existing cross correlation between Sony Corporation and PHOSAGRO PJSC, you can compare the effects of market volatilities on Sony and PHOSAGRO PJSC 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 PHOSAGRO PJSC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony and PHOSAGRO PJSC.

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

Diversification Opportunities for Sony and PHOSAGRO PJSC

0.45
  Correlation Coefficient
Sony
PHOSAGRO PJSC

Very weak diversification

The 3 months correlation between Sony and PHOSAGRO is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sony Corp. and PHOSAGRO PJSC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on PHOSAGRO PJSC 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 Corporation are associated (or correlated) with PHOSAGRO PJSC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHOSAGRO PJSC has no effect on the direction of Sony i.e. Sony and PHOSAGRO PJSC go up and down completely randomly.

Pair Corralation between Sony and PHOSAGRO PJSC

Considering the 30-days investment horizon, Sony Corporation is expected to generate 1.28 times more return on investment than PHOSAGRO PJSC. However, Sony is 1.28 times more volatile than PHOSAGRO PJSC. It trades about 0.19 of its potential returns per unit of risk. PHOSAGRO PJSC is currently generating about 0.01 per unit of risk. If you would invest  6,009  in Sony Corporation on June 11, 2020 and sell it today you would earn a total of  1,385  from holding Sony Corporation or generate 23.05% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy79.69%
ValuesDaily Returns

Sony Corp.  vs.  PHOSAGRO PJSC

 Performance (%) 
      Timeline 
Sony 
1212

Sony Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Sony Corporation are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days. In spite of rather unsteady fundamental drivers, Sony exhibited solid returns over the last few months and may actually be approaching a breakup point.
PHOSAGRO PJSC 
00

PHOSAGRO PJSC Risk-Adjusted Performance

Over the last 30 days PHOSAGRO PJSC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, PHOSAGRO PJSC is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Sony and PHOSAGRO PJSC Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Piotroski F Score module to get piotroski f score based on binary analysis strategy of nine different fundamentals.


 
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