Correlation Between SOFI TECHNOLOGIES and NiSource
Can any of the company-specific risk be diversified away by investing in both SOFI TECHNOLOGIES and NiSource 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 NiSource into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFI TECHNOLOGIES and NiSource, you can compare the effects of market volatilities on SOFI TECHNOLOGIES and NiSource 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 NiSource. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFI TECHNOLOGIES and NiSource.
Diversification Opportunities for SOFI TECHNOLOGIES and NiSource
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SOFI and NiSource is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding SOFI TECHNOLOGIES and NiSource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NiSource 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 NiSource. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NiSource has no effect on the direction of SOFI TECHNOLOGIES i.e., SOFI TECHNOLOGIES and NiSource go up and down completely randomly.
Pair Corralation between SOFI TECHNOLOGIES and NiSource
Assuming the 90 days horizon SOFI TECHNOLOGIES is expected to generate 3.17 times more return on investment than NiSource. However, SOFI TECHNOLOGIES is 3.17 times more volatile than NiSource. It trades about 0.07 of its potential returns per unit of risk. NiSource is currently generating about 0.11 per unit of risk. If you would invest 758.00 in SOFI TECHNOLOGIES on September 12, 2024 and sell it today you would earn a total of 734.00 from holding SOFI TECHNOLOGIES or generate 96.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOFI TECHNOLOGIES vs. NiSource
Performance |
| Timeline |
| SOFI TECHNOLOGIES |
| NiSource |
SOFI TECHNOLOGIES and NiSource Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFI TECHNOLOGIES and NiSource
The main advantage of trading using opposite SOFI TECHNOLOGIES and NiSource positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFI TECHNOLOGIES position performs unexpectedly, NiSource 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 NiSource will offset losses from the drop in NiSource's long position.| SOFI TECHNOLOGIES vs. XLMedia PLC | SOFI TECHNOLOGIES vs. ZINC MEDIA GR | SOFI TECHNOLOGIES vs. Dave Busters Entertainment | SOFI TECHNOLOGIES vs. CNVISION MEDIA |
| NiSource vs. SOFI TECHNOLOGIES | NiSource vs. Amkor Technology | NiSource vs. Grand Canyon Education | NiSource vs. Xinhua Winshare Publishing |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |