Correlation Between SOFI TECHNOLOGIES and National Storage
Can any of the company-specific risk be diversified away by investing in both SOFI TECHNOLOGIES and National Storage 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 National Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFI TECHNOLOGIES and National Storage Affiliates, you can compare the effects of market volatilities on SOFI TECHNOLOGIES and National Storage 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 National Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFI TECHNOLOGIES and National Storage.
Diversification Opportunities for SOFI TECHNOLOGIES and National Storage
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SOFI and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SOFI TECHNOLOGIES and National Storage Affiliates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Storage Aff 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 National Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Storage Aff has no effect on the direction of SOFI TECHNOLOGIES i.e., SOFI TECHNOLOGIES and National Storage go up and down completely randomly.
Pair Corralation between SOFI TECHNOLOGIES and National Storage
Assuming the 90 days horizon SOFI TECHNOLOGIES is expected to under-perform the National Storage. In addition to that, SOFI TECHNOLOGIES is 2.67 times more volatile than National Storage Affiliates. It trades about -0.17 of its total potential returns per unit of risk. National Storage Affiliates is currently generating about 0.07 per unit of volatility. If you would invest 3,575 in National Storage Affiliates on December 6, 2024 and sell it today you would earn a total of 73.00 from holding National Storage Affiliates or generate 2.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOFI TECHNOLOGIES vs. National Storage Affiliates
Performance |
| Timeline |
| SOFI TECHNOLOGIES |
| National Storage Aff |
SOFI TECHNOLOGIES and National Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFI TECHNOLOGIES and National Storage
The main advantage of trading using opposite SOFI TECHNOLOGIES and National Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFI TECHNOLOGIES position performs unexpectedly, National Storage 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 National Storage will offset losses from the drop in National Storage's long position.| SOFI TECHNOLOGIES vs. NORTHEAST UTILITIES | SOFI TECHNOLOGIES vs. Japan Asia Investment | SOFI TECHNOLOGIES vs. GEAR4MUSIC LS 10 | SOFI TECHNOLOGIES vs. Tencent Music Entertainment |
| National Storage vs. REGAL ASIAN INVESTMENTS | National Storage vs. SLR Investment Corp | National Storage vs. tokentus investment AG | National Storage vs. De Grey Mining |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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