Correlation Between De Grey and SOFI TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both De Grey 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 De Grey and SOFI TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between De Grey Mining and SOFI TECHNOLOGIES, you can compare the effects of market volatilities on De Grey 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 De Grey with a short position of SOFI TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Grey and SOFI TECHNOLOGIES.
Diversification Opportunities for De Grey and SOFI TECHNOLOGIES
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DGD and SOFI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding De Grey Mining and SOFI TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFI TECHNOLOGIES and De Grey 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 De Grey Mining 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 De Grey i.e., De Grey and SOFI TECHNOLOGIES go up and down completely randomly.
Pair Corralation between De Grey and SOFI TECHNOLOGIES
Assuming the 90 days trading horizon De Grey Mining is expected to generate 1.53 times more return on investment than SOFI TECHNOLOGIES. However, De Grey is 1.53 times more volatile than SOFI TECHNOLOGIES. It trades about 0.15 of its potential returns per unit of risk. SOFI TECHNOLOGIES is currently generating about 0.1 per unit of risk. If you would invest 91.00 in De Grey Mining on October 26, 2024 and sell it today you would earn a total of 26.00 from holding De Grey Mining or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
De Grey Mining vs. SOFI TECHNOLOGIES
Performance |
| Timeline |
| De Grey Mining |
| SOFI TECHNOLOGIES |
De Grey and SOFI TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with De Grey and SOFI TECHNOLOGIES
The main advantage of trading using opposite De Grey and SOFI TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Grey 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.| De Grey vs. Molson Coors Beverage | De Grey vs. National Beverage Corp | De Grey vs. PENN Entertainment | De Grey vs. PARKEN Sport Entertainment |
| SOFI TECHNOLOGIES vs. ADRIATIC METALS LS 013355 | SOFI TECHNOLOGIES vs. De Grey Mining | SOFI TECHNOLOGIES vs. VELA TECHNOLPLC LS 0001 | SOFI TECHNOLOGIES vs. G III Apparel Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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