Correlation Between SoFi Technologies and Grand City
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Grand City 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 Grand City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Grand City Properties, you can compare the effects of market volatilities on SoFi Technologies and Grand City 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 Grand City. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Grand City.
Diversification Opportunities for SoFi Technologies and Grand City
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SoFi and Grand is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Grand City Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand City Properties 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 Grand City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand City Properties has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Grand City go up and down completely randomly.
Pair Corralation between SoFi Technologies and Grand City
Given the investment horizon of 90 days SoFi Technologies is expected to generate 1.39 times more return on investment than Grand City. However, SoFi Technologies is 1.39 times more volatile than Grand City Properties. It trades about 0.09 of its potential returns per unit of risk. Grand City Properties is currently generating about 0.06 per unit of risk. If you would invest 603.00 in SoFi Technologies on September 19, 2024 and sell it today you would earn a total of 1,063 from holding SoFi Technologies or generate 176.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.75% |
| Values | Daily Returns |
SoFi Technologies vs. Grand City Properties
Performance |
| Timeline |
| SoFi Technologies |
| Grand City Properties |
SoFi Technologies and Grand City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and Grand City
The main advantage of trading using opposite SoFi Technologies and Grand City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Grand City 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 Grand City will offset losses from the drop in Grand City's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies Class |
| Grand City vs. J W Mays | Grand City vs. Frp Holdings Ord | Grand City vs. Maui Land Pineapple | Grand City vs. Fathom Holdings |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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