Correlation Between SoFi Technologies and Nasdaq CTA
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By analyzing existing cross correlation between SoFi Technologies and Nasdaq CTA Artificial, you can compare the effects of market volatilities on SoFi Technologies and Nasdaq CTA 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 Nasdaq CTA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Nasdaq CTA.
Diversification Opportunities for SoFi Technologies and Nasdaq CTA
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between SoFi and Nasdaq is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Nasdaq CTA Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq CTA Artificial 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 Nasdaq CTA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq CTA Artificial has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Nasdaq CTA go up and down completely randomly.
Pair Corralation between SoFi Technologies and Nasdaq CTA
Given the investment horizon of 90 days SoFi Technologies is expected to generate 2.83 times more return on investment than Nasdaq CTA. However, SoFi Technologies is 2.83 times more volatile than Nasdaq CTA Artificial. It trades about 0.36 of its potential returns per unit of risk. Nasdaq CTA Artificial is currently generating about 0.14 per unit of risk. If you would invest 819.00 in SoFi Technologies on September 19, 2024 and sell it today you would earn a total of 847.00 from holding SoFi Technologies or generate 103.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
SoFi Technologies vs. Nasdaq CTA Artificial
Performance |
| Timeline |
SoFi Technologies and Nasdaq CTA Volatility Contrast
Predicted Return Density |
| Returns |
SoFi Technologies
Pair trading matchups for SoFi Technologies
Nasdaq CTA Artificial
Pair trading matchups for Nasdaq CTA
Pair Trading with SoFi Technologies and Nasdaq CTA
The main advantage of trading using opposite SoFi Technologies and Nasdaq CTA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Nasdaq CTA 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 Nasdaq CTA will offset losses from the drop in Nasdaq CTA's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies Class |
| Nasdaq CTA vs. Lucid Group | Nasdaq CTA vs. Dana Inc | Nasdaq CTA vs. Thor Industries | Nasdaq CTA vs. PACCAR Inc |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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