Correlation Between SoFi Technologies and Eastgate Biotech
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Eastgate Biotech 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 Eastgate Biotech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Eastgate Biotech Corp, you can compare the effects of market volatilities on SoFi Technologies and Eastgate Biotech 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 Eastgate Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Eastgate Biotech.
Diversification Opportunities for SoFi Technologies and Eastgate Biotech
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SoFi and Eastgate is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Eastgate Biotech Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastgate Biotech Corp 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 Eastgate Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastgate Biotech Corp has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Eastgate Biotech go up and down completely randomly.
Pair Corralation between SoFi Technologies and Eastgate Biotech
If you would invest 1,382 in SoFi Technologies on September 13, 2024 and sell it today you would earn a total of 208.00 from holding SoFi Technologies or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
SoFi Technologies vs. Eastgate Biotech Corp
Performance |
| Timeline |
| SoFi Technologies |
| Eastgate Biotech Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SoFi Technologies and Eastgate Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and Eastgate Biotech
The main advantage of trading using opposite SoFi Technologies and Eastgate Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Eastgate Biotech 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 Eastgate Biotech will offset losses from the drop in Eastgate Biotech's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies Class |
| Eastgate Biotech vs. Amkor Technology | Eastgate Biotech vs. Black Hills | Eastgate Biotech vs. IPG Photonics | Eastgate Biotech vs. NetEase |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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