Correlation Between OFFICE DEPOT and SOFI TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both OFFICE DEPOT 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 OFFICE DEPOT and SOFI TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OFFICE DEPOT and SOFI TECHNOLOGIES, you can compare the effects of market volatilities on OFFICE DEPOT 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 OFFICE DEPOT with a short position of SOFI TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of OFFICE DEPOT and SOFI TECHNOLOGIES.
Diversification Opportunities for OFFICE DEPOT and SOFI TECHNOLOGIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OFFICE and SOFI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding OFFICE DEPOT and SOFI TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFI TECHNOLOGIES and OFFICE DEPOT 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 OFFICE DEPOT 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 OFFICE DEPOT i.e., OFFICE DEPOT and SOFI TECHNOLOGIES go up and down completely randomly.
Pair Corralation between OFFICE DEPOT and SOFI TECHNOLOGIES
If you would invest 595.00 in SOFI TECHNOLOGIES on September 15, 2024 and sell it today you would earn a total of 957.00 from holding SOFI TECHNOLOGIES or generate 160.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OFFICE DEPOT vs. SOFI TECHNOLOGIES
Performance |
| Timeline |
| OFFICE DEPOT |
| SOFI TECHNOLOGIES |
OFFICE DEPOT and SOFI TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OFFICE DEPOT and SOFI TECHNOLOGIES
The main advantage of trading using opposite OFFICE DEPOT and SOFI TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OFFICE DEPOT 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.| OFFICE DEPOT vs. URBAN OUTFITTERS | OFFICE DEPOT vs. GRIFFIN MINING LTD | OFFICE DEPOT vs. Cars Inc | OFFICE DEPOT vs. Geely Automobile Holdings |
| SOFI TECHNOLOGIES vs. GungHo Online Entertainment | SOFI TECHNOLOGIES vs. Aluminum of | SOFI TECHNOLOGIES vs. OFFICE DEPOT | SOFI TECHNOLOGIES vs. YATRA ONLINE DL 0001 |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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