Correlation Between SoFi Technologies and CapitaLand Integrated
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and CapitaLand Integrated 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 CapitaLand Integrated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and CapitaLand Integrated Commercial, you can compare the effects of market volatilities on SoFi Technologies and CapitaLand Integrated 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 CapitaLand Integrated. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and CapitaLand Integrated.
Diversification Opportunities for SoFi Technologies and CapitaLand Integrated
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SoFi and CapitaLand is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and CapitaLand Integrated Commerci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CapitaLand Integrated 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 CapitaLand Integrated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CapitaLand Integrated has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and CapitaLand Integrated go up and down completely randomly.
Pair Corralation between SoFi Technologies and CapitaLand Integrated
Given the investment horizon of 90 days SoFi Technologies is expected to generate 1.26 times more return on investment than CapitaLand Integrated. However, SoFi Technologies is 1.26 times more volatile than CapitaLand Integrated Commercial. It trades about -0.08 of its potential returns per unit of risk. CapitaLand Integrated Commercial is currently generating about -0.23 per unit of risk. If you would invest 1,602 in SoFi Technologies on October 7, 2024 and sell it today you would lose (118.00) from holding SoFi Technologies or give up 7.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SoFi Technologies vs. CapitaLand Integrated Commerci
Performance |
| Timeline |
| SoFi Technologies |
| CapitaLand Integrated |
SoFi Technologies and CapitaLand Integrated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and CapitaLand Integrated
The main advantage of trading using opposite SoFi Technologies and CapitaLand Integrated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, CapitaLand Integrated 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 CapitaLand Integrated will offset losses from the drop in CapitaLand Integrated's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies Class |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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