Correlation Between Spinnaker ETF and SoFi Social
Can any of the company-specific risk be diversified away by investing in both Spinnaker ETF and SoFi Social 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 Spinnaker ETF and SoFi Social into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spinnaker ETF Series and SoFi Social 50, you can compare the effects of market volatilities on Spinnaker ETF and SoFi Social 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 Spinnaker ETF with a short position of SoFi Social. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spinnaker ETF and SoFi Social.
Diversification Opportunities for Spinnaker ETF and SoFi Social
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Spinnaker and SoFi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Spinnaker ETF Series and SoFi Social 50 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoFi Social 50 and Spinnaker ETF 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 Spinnaker ETF Series are associated (or correlated) with SoFi Social. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoFi Social 50 has no effect on the direction of Spinnaker ETF i.e., Spinnaker ETF and SoFi Social go up and down completely randomly.
Pair Corralation between Spinnaker ETF and SoFi Social
Given the investment horizon of 90 days Spinnaker ETF is expected to generate 12.57 times less return on investment than SoFi Social. But when comparing it to its historical volatility, Spinnaker ETF Series is 13.16 times less risky than SoFi Social. It trades about 0.2 of its potential returns per unit of risk. SoFi Social 50 is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,187 in SoFi Social 50 on November 3, 2024 and sell it today you would earn a total of 1,255 from holding SoFi Social 50 or generate 39.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Spinnaker ETF Series vs. SoFi Social 50
Performance |
| Timeline |
| Spinnaker ETF Series |
| SoFi Social 50 |
Spinnaker ETF and SoFi Social Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spinnaker ETF and SoFi Social
The main advantage of trading using opposite Spinnaker ETF and SoFi Social positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spinnaker ETF position performs unexpectedly, SoFi Social 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 Social will offset losses from the drop in SoFi Social's long position.| Spinnaker ETF vs. Columbia Diversified Fixed | Spinnaker ETF vs. Doubleline Etf Trust | Spinnaker ETF vs. Virtus Newfleet ABSMBS | Spinnaker ETF vs. Vident Core Bond |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |