Correlation Between SoFi Technologies and Akoustis Technologies
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Akoustis 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 SoFi Technologies and Akoustis Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Akoustis Technologies, you can compare the effects of market volatilities on SoFi Technologies and Akoustis 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 SoFi Technologies with a short position of Akoustis Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Akoustis Technologies.
Diversification Opportunities for SoFi Technologies and Akoustis Technologies
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between SoFi and Akoustis is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Akoustis Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akoustis Technologies 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 Akoustis Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akoustis Technologies has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Akoustis Technologies go up and down completely randomly.
Pair Corralation between SoFi Technologies and Akoustis Technologies
Given the investment horizon of 90 days SoFi Technologies is expected to generate 0.38 times more return on investment than Akoustis Technologies. However, SoFi Technologies is 2.66 times less risky than Akoustis Technologies. It trades about 0.24 of its potential returns per unit of risk. Akoustis Technologies is currently generating about -0.02 per unit of risk. If you would invest 677.00 in SoFi Technologies on September 1, 2024 and sell it today you would earn a total of 964.00 from holding SoFi Technologies or generate 142.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SoFi Technologies vs. Akoustis Technologies
Performance |
| Timeline |
| SoFi Technologies |
| Akoustis Technologies |
SoFi Technologies and Akoustis Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and Akoustis Technologies
The main advantage of trading using opposite SoFi Technologies and Akoustis Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Akoustis 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 Akoustis Technologies will offset losses from the drop in Akoustis Technologies' long position.| SoFi Technologies vs. 360 Finance | SoFi Technologies vs. Atlanticus Holdings | SoFi Technologies vs. Qudian Inc | SoFi Technologies vs. Enova International |
| Akoustis Technologies vs. Aviat Networks | Akoustis Technologies vs. AudioCodes | Akoustis Technologies vs. Silicom | Akoustis Technologies vs. Gilat Satellite Networks |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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