Correlation Between Sony Group and Boot Barn
Can any of the company-specific risk be diversified away by investing in both Sony Group and Boot Barn 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 Group and Boot Barn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sony Group Corp and Boot Barn Holdings, you can compare the effects of market volatilities on Sony Group and Boot Barn 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 Group with a short position of Boot Barn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sony Group and Boot Barn.
Diversification Opportunities for Sony Group and Boot Barn
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sony and Boot is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sony Group Corp and Boot Barn Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boot Barn Holdings and Sony 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 Sony Group Corp are associated (or correlated) with Boot Barn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boot Barn Holdings has no effect on the direction of Sony Group i.e., Sony Group and Boot Barn go up and down completely randomly.
Pair Corralation between Sony Group and Boot Barn
Given the investment horizon of 90 days Sony Group is expected to generate 4.24 times less return on investment than Boot Barn. But when comparing it to its historical volatility, Sony Group Corp is 1.18 times less risky than Boot Barn. It trades about 0.02 of its potential returns per unit of risk. Boot Barn Holdings is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16,484 in Boot Barn Holdings on June 6, 2025 and sell it today you would earn a total of 1,504 from holding Boot Barn Holdings or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sony Group Corp vs. Boot Barn Holdings
Performance |
| Timeline |
| Sony Group Corp |
| Boot Barn Holdings |
Sony Group and Boot Barn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sony Group and Boot Barn
The main advantage of trading using opposite Sony Group and Boot Barn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sony Group position performs unexpectedly, Boot Barn 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 Boot Barn will offset losses from the drop in Boot Barn's long position.| Sony Group vs. LG Display Co | Sony Group vs. Sony Corp | Sony Group vs. Sonos Inc | Sony Group vs. Nintendo Co ADR |
| Boot Barn vs. Burlington Stores | Boot Barn vs. Buckle Inc | Boot Barn vs. Carters | Boot Barn vs. Citi Trends |
Check out your portfolio center.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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