Correlation Between Utime and Sony Group

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

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

Diversification Opportunities for Utime and Sony Group

0.0

Correlation Coefficient

Utime  Sony Group

Pay attention - limited upside

The 3 months correlation between Utime and Sony is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Utime and Sony Group Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sony Group Corp and Utime 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 Utime are associated (or correlated) with Sony Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sony Group Corp has no effect on the direction of Utime i.e., Utime and Sony Group go up and down completely randomly.

Pair Corralation between Utime and Sony Group

If you would invest  1,624  in Sony Group Corp on May 7, 2025 and sell it today you would earn a total of  852.00  from holding Sony Group Corp or generate 52.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Utime  vs.  Sony Group Corp

Utime

Risk-Adjusted Performance

Very Weak

Over the last 90 days Utime has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Utime is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Sony Group Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sony Group Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Sony Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Utime and Sony Group

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

The idea behind Utime and Sony Group Corp 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.