Correlation Between Ryanair Holdings and Sow Good

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

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

Diversification Opportunities for Ryanair Holdings and Sow Good

0.5

Correlation Coefficient

Ryanair Holdings  Sow Good

Very weak diversification

The 3 months correlation between Ryanair and Sow is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Ryanair Holdings PLC and Sow Good Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sow Good Common and Ryanair Holdings 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 Ryanair Holdings PLC are associated (or correlated) with Sow Good. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sow Good Common has no effect on the direction of Ryanair Holdings i.e., Ryanair Holdings and Sow Good go up and down completely randomly.

Pair Corralation between Ryanair Holdings and Sow Good

Assuming the 90 days horizon Ryanair Holdings is expected to generate 3.15 times less return on investment than Sow Good. But when comparing it to its historical volatility, Ryanair Holdings PLC is 6.1 times less risky than Sow Good. It trades about 0.2 of its potential returns per unit of risk. Sow Good Common is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  62.00  in Sow Good Common on May 7, 2025 and sell it today you would earn a total of  28.00  from holding Sow Good Common or generate 45.16% return on investment over 90 days.

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

Ryanair Holdings PLC  vs.  Sow Good Common

Ryanair Holdings PLC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ryanair Holdings PLC are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Ryanair Holdings showed solid returns over the last few months and may actually be approaching a breakup point.

Sow Good Common

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Sow Good Common are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Sow Good reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ryanair Holdings and Sow Good

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

The idea behind Ryanair Holdings PLC and Sow Good Common 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.