Correlation Between SOFI TECHNOLOGIES and REXFORD INDREALTY
Can any of the company-specific risk be diversified away by investing in both SOFI TECHNOLOGIES and REXFORD INDREALTY 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 REXFORD INDREALTY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFI TECHNOLOGIES and REXFORD INDREALTY DL 01, you can compare the effects of market volatilities on SOFI TECHNOLOGIES and REXFORD INDREALTY 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 REXFORD INDREALTY. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFI TECHNOLOGIES and REXFORD INDREALTY.
Diversification Opportunities for SOFI TECHNOLOGIES and REXFORD INDREALTY
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SOFI and REXFORD is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding SOFI TECHNOLOGIES and REXFORD INDREALTY DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REXFORD INDREALTY 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 REXFORD INDREALTY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REXFORD INDREALTY has no effect on the direction of SOFI TECHNOLOGIES i.e., SOFI TECHNOLOGIES and REXFORD INDREALTY go up and down completely randomly.
Pair Corralation between SOFI TECHNOLOGIES and REXFORD INDREALTY
Assuming the 90 days horizon SOFI TECHNOLOGIES is expected to generate 2.26 times more return on investment than REXFORD INDREALTY. However, SOFI TECHNOLOGIES is 2.26 times more volatile than REXFORD INDREALTY DL 01. It trades about 0.22 of its potential returns per unit of risk. REXFORD INDREALTY DL 01 is currently generating about 0.01 per unit of risk. If you would invest 617.00 in SOFI TECHNOLOGIES on September 3, 2024 and sell it today you would earn a total of 947.00 from holding SOFI TECHNOLOGIES or generate 153.48% 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. REXFORD INDREALTY DL 01
Performance |
| Timeline |
| SOFI TECHNOLOGIES |
| REXFORD INDREALTY |
SOFI TECHNOLOGIES and REXFORD INDREALTY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFI TECHNOLOGIES and REXFORD INDREALTY
The main advantage of trading using opposite SOFI TECHNOLOGIES and REXFORD INDREALTY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFI TECHNOLOGIES position performs unexpectedly, REXFORD INDREALTY 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 REXFORD INDREALTY will offset losses from the drop in REXFORD INDREALTY's long position.| SOFI TECHNOLOGIES vs. Scientific Games | SOFI TECHNOLOGIES vs. VIAPLAY GROUP AB | SOFI TECHNOLOGIES vs. Universal Display | SOFI TECHNOLOGIES vs. Playa Hotels Resorts |
| REXFORD INDREALTY vs. Bausch Health Companies | REXFORD INDREALTY vs. SOFI TECHNOLOGIES | REXFORD INDREALTY vs. Sabra Health Care | REXFORD INDREALTY vs. NetSol 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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