Correlation Between SOFI TECHNOLOGIES and MOVIE GAMES
Can any of the company-specific risk be diversified away by investing in both SOFI TECHNOLOGIES and MOVIE GAMES 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 SOFI TECHNOLOGIES and MOVIE GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFI TECHNOLOGIES and MOVIE GAMES SA, you can compare the effects of market volatilities on SOFI TECHNOLOGIES and MOVIE GAMES 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 SOFI TECHNOLOGIES with a short position of MOVIE GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFI TECHNOLOGIES and MOVIE GAMES.
Diversification Opportunities for SOFI TECHNOLOGIES and MOVIE GAMES
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SOFI and MOVIE is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding SOFI TECHNOLOGIES and MOVIE GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MOVIE GAMES SA and SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES are associated (or correlated) with MOVIE GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MOVIE GAMES SA has no effect on the direction of SOFI TECHNOLOGIES i.e., SOFI TECHNOLOGIES and MOVIE GAMES go up and down completely randomly.
Pair Corralation between SOFI TECHNOLOGIES and MOVIE GAMES
Assuming the 90 days horizon SOFI TECHNOLOGIES is expected to generate 1.07 times more return on investment than MOVIE GAMES. However, SOFI TECHNOLOGIES is 1.07 times more volatile than MOVIE GAMES SA. It trades about 0.07 of its potential returns per unit of risk. MOVIE GAMES SA is currently generating about 0.0 per unit of risk. If you would invest 495.00 in SOFI TECHNOLOGIES on October 11, 2024 and sell it today you would earn a total of 942.00 from holding SOFI TECHNOLOGIES or generate 190.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOFI TECHNOLOGIES vs. MOVIE GAMES SA
Performance |
| Timeline |
| SOFI TECHNOLOGIES |
| MOVIE GAMES SA |
SOFI TECHNOLOGIES and MOVIE GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFI TECHNOLOGIES and MOVIE GAMES
The main advantage of trading using opposite SOFI TECHNOLOGIES and MOVIE GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFI TECHNOLOGIES position performs unexpectedly, MOVIE GAMES 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 MOVIE GAMES will offset losses from the drop in MOVIE GAMES's long position.| SOFI TECHNOLOGIES vs. UNITED RENTALS | SOFI TECHNOLOGIES vs. Air Lease | SOFI TECHNOLOGIES vs. WILLIS LEASE FIN | SOFI TECHNOLOGIES vs. CHRYSALIS INVESTMENTS LTD |
| MOVIE GAMES vs. Kingdee International Software | MOVIE GAMES vs. Uber Technologies | MOVIE GAMES vs. Harmony Gold Mining | MOVIE GAMES vs. SOFI TECHNOLOGIES |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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