Correlation Between SoFi Technologies and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Cellnex Telecom 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 Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Cellnex Telecom SA, you can compare the effects of market volatilities on SoFi Technologies and Cellnex Telecom 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 Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Cellnex Telecom.
Diversification Opportunities for SoFi Technologies and Cellnex Telecom
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between SoFi and Cellnex is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Cellnex Telecom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellnex Telecom SA 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 Cellnex Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellnex Telecom SA has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Cellnex Telecom go up and down completely randomly.
Pair Corralation between SoFi Technologies and Cellnex Telecom
Given the investment horizon of 90 days SoFi Technologies is expected to under-perform the Cellnex Telecom. In addition to that, SoFi Technologies is 1.44 times more volatile than Cellnex Telecom SA. It trades about -0.24 of its total potential returns per unit of risk. Cellnex Telecom SA is currently generating about 0.04 per unit of volatility. If you would invest 1,655 in Cellnex Telecom SA on December 6, 2024 and sell it today you would earn a total of 24.00 from holding Cellnex Telecom SA or generate 1.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SoFi Technologies vs. Cellnex Telecom SA
Performance |
| Timeline |
| SoFi Technologies |
| Cellnex Telecom SA |
SoFi Technologies and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and Cellnex Telecom
The main advantage of trading using opposite SoFi Technologies and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Cellnex Telecom 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 Cellnex Telecom will offset losses from the drop in Cellnex Telecom's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies Class |
| Cellnex Telecom vs. Jones Lang LaSalle | Cellnex Telecom vs. Cushman Wakefield plc | Cellnex Telecom vs. Colliers International Group | Cellnex Telecom vs. CoStar Group |
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..
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