Correlation Between SoFi Technologies and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Yuexiu Transport 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 Yuexiu Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on SoFi Technologies and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Yuexiu Transport.
Diversification Opportunities for SoFi Technologies and Yuexiu Transport
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SoFi and Yuexiu is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Yuexiu Transport go up and down completely randomly.
Pair Corralation between SoFi Technologies and Yuexiu Transport
If you would invest 1,350 in SoFi Technologies on September 14, 2024 and sell it today you would earn a total of 240.00 from holding SoFi Technologies or generate 17.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SoFi Technologies vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| SoFi Technologies |
| Yuexiu Transport Inf |
SoFi Technologies and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and Yuexiu Transport
The main advantage of trading using opposite SoFi Technologies and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies Class |
| Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Verra Mobility Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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