Correlation Between Sono Group and AYRO

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

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

Diversification Opportunities for Sono Group and AYRO

-0.01

Correlation Coefficient

Sono Group  AYRO

Good diversification

The 3 months correlation between Sono and AYRO is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sono Group NV and AYRO Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AYRO Inc and Sono Group 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 Sono Group NV are associated (or correlated) with AYRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AYRO Inc has no effect on the direction of Sono Group i.e., Sono Group and AYRO go up and down completely randomly.

Pair Corralation between Sono Group and AYRO

Assuming the 90 days horizon Sono Group NV is expected to under-perform the AYRO. In addition to that, Sono Group is 2.21 times more volatile than AYRO Inc. It trades about -0.03 of its total potential returns per unit of risk. AYRO Inc is currently generating about 0.0 per unit of volatility. If you would invest  776.00  in AYRO Inc on May 4, 2025 and sell it today you would lose (59.00) from holding AYRO Inc or give up 7.6% of portfolio value over 90 days.

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

Sono Group NV  vs.  AYRO Inc

Sono Group NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sono Group NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

AYRO Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days AYRO Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, AYRO is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Sono Group and AYRO

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

The idea behind Sono Group NV and AYRO Inc 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.