Correlation Between SoFi Technologies and AGL Energy
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and AGL Energy 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 Technologies and AGL Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and AGL Energy Limited, you can compare the effects of market volatilities on SoFi Technologies and AGL Energy 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 Technologies with a short position of AGL Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and AGL Energy.
Diversification Opportunities for SoFi Technologies and AGL Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SoFi and AGL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and AGL Energy Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGL Energy Limited and SoFi Technologies 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 Technologies are associated (or correlated) with AGL Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGL Energy Limited has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and AGL Energy go up and down completely randomly.
Pair Corralation between SoFi Technologies and AGL Energy
If you would invest (100.00) in AGL Energy Limited on November 29, 2024 and sell it today you would earn a total of 100.00 from holding AGL Energy Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SoFi Technologies vs. AGL Energy Limited
Performance |
| Timeline |
| SoFi Technologies |
| AGL Energy Limited |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SoFi Technologies and AGL Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and AGL Energy
The main advantage of trading using opposite SoFi Technologies and AGL Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, AGL Energy 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 AGL Energy will offset losses from the drop in AGL Energy's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies Class |
| AGL Energy vs. Malaga Financial | AGL Energy vs. FMC Corporation | AGL Energy vs. Encore Capital Group | AGL Energy vs. Catalyst Bancorp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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