Correlation Between SOFI TECHNOLOGIES and Cleanaway Waste
Can any of the company-specific risk be diversified away by investing in both SOFI TECHNOLOGIES and Cleanaway Waste 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 Cleanaway Waste into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFI TECHNOLOGIES and Cleanaway Waste Management, you can compare the effects of market volatilities on SOFI TECHNOLOGIES and Cleanaway Waste 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 Cleanaway Waste. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFI TECHNOLOGIES and Cleanaway Waste.
Diversification Opportunities for SOFI TECHNOLOGIES and Cleanaway Waste
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOFI and Cleanaway is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding SOFI TECHNOLOGIES and Cleanaway Waste Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleanaway Waste Mana 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 Cleanaway Waste. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleanaway Waste Mana has no effect on the direction of SOFI TECHNOLOGIES i.e., SOFI TECHNOLOGIES and Cleanaway Waste go up and down completely randomly.
Pair Corralation between SOFI TECHNOLOGIES and Cleanaway Waste
Assuming the 90 days horizon SOFI TECHNOLOGIES is expected to generate 1.41 times more return on investment than Cleanaway Waste. However, SOFI TECHNOLOGIES is 1.41 times more volatile than Cleanaway Waste Management. It trades about -0.03 of its potential returns per unit of risk. Cleanaway Waste Management is currently generating about -0.07 per unit of risk. If you would invest 1,485 in SOFI TECHNOLOGIES on October 11, 2024 and sell it today you would lose (48.00) from holding SOFI TECHNOLOGIES or give up 3.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SOFI TECHNOLOGIES vs. Cleanaway Waste Management
Performance |
| Timeline |
| SOFI TECHNOLOGIES |
| Cleanaway Waste Mana |
SOFI TECHNOLOGIES and Cleanaway Waste Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFI TECHNOLOGIES and Cleanaway Waste
The main advantage of trading using opposite SOFI TECHNOLOGIES and Cleanaway Waste positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFI TECHNOLOGIES position performs unexpectedly, Cleanaway Waste 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 Cleanaway Waste will offset losses from the drop in Cleanaway Waste's long position.| SOFI TECHNOLOGIES vs. CITIC Telecom International | SOFI TECHNOLOGIES vs. Geely Automobile Holdings | SOFI TECHNOLOGIES vs. Calibre Mining Corp | SOFI TECHNOLOGIES vs. SK TELECOM TDADR |
| Cleanaway Waste vs. VELA TECHNOLPLC LS 0001 | Cleanaway Waste vs. ASPEN TECHINC DL | Cleanaway Waste vs. SOFI TECHNOLOGIES | Cleanaway Waste vs. Kingdee International Software |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |