Correlation Between SoFi Social and Roundhill Investments
Can any of the company-specific risk be diversified away by investing in both SoFi Social and Roundhill Investments 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 Social and Roundhill Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Social 50 and Roundhill Investments, you can compare the effects of market volatilities on SoFi Social and Roundhill Investments 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 Social with a short position of Roundhill Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Social and Roundhill Investments.
Diversification Opportunities for SoFi Social and Roundhill Investments
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SoFi and Roundhill is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Social 50 and Roundhill Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roundhill Investments and SoFi Social 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 Social 50 are associated (or correlated) with Roundhill Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roundhill Investments has no effect on the direction of SoFi Social i.e., SoFi Social and Roundhill Investments go up and down completely randomly.
Pair Corralation between SoFi Social and Roundhill Investments
If you would invest 3,281 in SoFi Social 50 on August 29, 2024 and sell it today you would earn a total of 950.00 from holding SoFi Social 50 or generate 28.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
SoFi Social 50 vs. Roundhill Investments
Performance |
| Timeline |
| SoFi Social 50 |
| Roundhill Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SoFi Social and Roundhill Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Social and Roundhill Investments
The main advantage of trading using opposite SoFi Social and Roundhill Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Social position performs unexpectedly, Roundhill Investments 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 Roundhill Investments will offset losses from the drop in Roundhill Investments' long position.| SoFi Social vs. iShares MSCI USA | SoFi Social vs. iShares MSCI USA | SoFi Social vs. iShares MSCI USA | SoFi Social vs. iShares Expanded Tech Software |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |