Correlation Between SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY P, you can compare the effects of market volatilities on SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY.
Diversification Opportunities for SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SOFI and FANDIFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FANDIFI TECHNOLOGY has no effect on the direction of SOFI TECHNOLOGIES i.e., SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY go up and down completely randomly.
Pair Corralation between SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY
If you would invest 1,028 in SOFI TECHNOLOGIES on September 1, 2024 and sell it today you would earn a total of 536.00 from holding SOFI TECHNOLOGIES or generate 52.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SOFI TECHNOLOGIES vs. FANDIFI TECHNOLOGY P
Performance |
| Timeline |
| SOFI TECHNOLOGIES |
| FANDIFI TECHNOLOGY |
SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY
The main advantage of trading using opposite SOFI TECHNOLOGIES and FANDIFI TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFI TECHNOLOGIES position performs unexpectedly, FANDIFI TECHNOLOGY 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 FANDIFI TECHNOLOGY will offset losses from the drop in FANDIFI TECHNOLOGY's long position.| SOFI TECHNOLOGIES vs. Apple Inc | SOFI TECHNOLOGIES vs. Apple Inc | SOFI TECHNOLOGIES vs. Apple Inc | SOFI TECHNOLOGIES vs. Apple Inc |
| FANDIFI TECHNOLOGY vs. SAP SE | FANDIFI TECHNOLOGY vs. Superior Plus Corp | FANDIFI TECHNOLOGY vs. NMI Holdings | FANDIFI TECHNOLOGY vs. Origin Agritech |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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