Correlation Between SOFI TECHNOLOGIES and GLG LIFE
Can any of the company-specific risk be diversified away by investing in both SOFI TECHNOLOGIES and GLG LIFE 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 GLG LIFE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFI TECHNOLOGIES and GLG LIFE TECH, you can compare the effects of market volatilities on SOFI TECHNOLOGIES and GLG LIFE 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 GLG LIFE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFI TECHNOLOGIES and GLG LIFE.
Diversification Opportunities for SOFI TECHNOLOGIES and GLG LIFE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SOFI and GLG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SOFI TECHNOLOGIES and GLG LIFE TECH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLG LIFE TECH 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 GLG LIFE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLG LIFE TECH has no effect on the direction of SOFI TECHNOLOGIES i.e., SOFI TECHNOLOGIES and GLG LIFE go up and down completely randomly.
Pair Corralation between SOFI TECHNOLOGIES and GLG LIFE
If you would invest 1,016 in SOFI TECHNOLOGIES on August 25, 2024 and sell it today you would earn a total of 391.00 from holding SOFI TECHNOLOGIES or generate 38.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOFI TECHNOLOGIES vs. GLG LIFE TECH
Performance |
| Timeline |
| SOFI TECHNOLOGIES |
| GLG LIFE TECH |
SOFI TECHNOLOGIES and GLG LIFE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFI TECHNOLOGIES and GLG LIFE
The main advantage of trading using opposite SOFI TECHNOLOGIES and GLG LIFE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFI TECHNOLOGIES position performs unexpectedly, GLG LIFE 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 GLG LIFE will offset losses from the drop in GLG LIFE's long position.| SOFI TECHNOLOGIES vs. Suntory Beverage Food | SOFI TECHNOLOGIES vs. ScanSource | SOFI TECHNOLOGIES vs. Insurance Australia Group | SOFI TECHNOLOGIES vs. SCANSOURCE |
| GLG LIFE vs. INTER CARS SA | GLG LIFE vs. Motorcar Parts of | GLG LIFE vs. GRIFFIN MINING LTD | GLG LIFE vs. Geely Automobile Holdings |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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