Correlation Between GLG LIFE and SOFI TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both GLG LIFE and SOFI TECHNOLOGIES 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 GLG LIFE and SOFI TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GLG LIFE TECH and SOFI TECHNOLOGIES, you can compare the effects of market volatilities on GLG LIFE and SOFI TECHNOLOGIES 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 GLG LIFE with a short position of SOFI TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of GLG LIFE and SOFI TECHNOLOGIES.
Diversification Opportunities for GLG LIFE and SOFI TECHNOLOGIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GLG and SOFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GLG LIFE TECH and SOFI TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFI TECHNOLOGIES and GLG LIFE 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 GLG LIFE TECH are associated (or correlated) with SOFI TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOFI TECHNOLOGIES has no effect on the direction of GLG LIFE i.e., GLG LIFE and SOFI TECHNOLOGIES go up and down completely randomly.
Pair Corralation between GLG LIFE and SOFI TECHNOLOGIES
If you would invest 1,048 in SOFI TECHNOLOGIES on August 29, 2024 and sell it today you would earn a total of 455.00 from holding SOFI TECHNOLOGIES or generate 43.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GLG LIFE TECH vs. SOFI TECHNOLOGIES
Performance |
| Timeline |
| GLG LIFE TECH |
| SOFI TECHNOLOGIES |
GLG LIFE and SOFI TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GLG LIFE and SOFI TECHNOLOGIES
The main advantage of trading using opposite GLG LIFE and SOFI TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GLG LIFE position performs unexpectedly, SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES will offset losses from the drop in SOFI TECHNOLOGIES's long position.| GLG LIFE vs. MAGIC SOFTWARE ENTR | GLG LIFE vs. Harmony Gold Mining | GLG LIFE vs. Columbia Sportswear | GLG LIFE vs. MCEWEN MINING INC |
| SOFI TECHNOLOGIES vs. Apple Inc | SOFI TECHNOLOGIES vs. Apple Inc | SOFI TECHNOLOGIES vs. Apple Inc | SOFI TECHNOLOGIES vs. Apple Inc |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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