Correlation Between SoFi Technologies and Auckland International
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Auckland International 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 Auckland International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Auckland International Airport, you can compare the effects of market volatilities on SoFi Technologies and Auckland International 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 Auckland International. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Auckland International.
Diversification Opportunities for SoFi Technologies and Auckland International
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SoFi and Auckland is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Auckland International Airport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auckland International 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 Auckland International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auckland International has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Auckland International go up and down completely randomly.
Pair Corralation between SoFi Technologies and Auckland International
Given the investment horizon of 90 days SoFi Technologies is expected to generate 1.35 times more return on investment than Auckland International. However, SoFi Technologies is 1.35 times more volatile than Auckland International Airport. It trades about 0.42 of its potential returns per unit of risk. Auckland International Airport is currently generating about -0.03 per unit of risk. If you would invest 1,119 in SoFi Technologies on August 29, 2024 and sell it today you would earn a total of 430.00 from holding SoFi Technologies or generate 38.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SoFi Technologies vs. Auckland International Airport
Performance |
| Timeline |
| SoFi Technologies |
| Auckland International |
SoFi Technologies and Auckland International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and Auckland International
The main advantage of trading using opposite SoFi Technologies and Auckland International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Auckland International 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 Auckland International will offset losses from the drop in Auckland International's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies |
| Auckland International vs. Aeroports de Paris | Auckland International vs. Aena SME SA | Auckland International vs. Aena SME SA | Auckland International vs. Airports of Thailand |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |