Correlation Between SoFi Technologies and Nasdaq Benchmark
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By analyzing existing cross correlation between SoFi Technologies and Nasdaq Benchmark Energy, you can compare the effects of market volatilities on SoFi Technologies and Nasdaq Benchmark 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 Benchmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Nasdaq Benchmark.
Diversification Opportunities for SoFi Technologies and Nasdaq Benchmark
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SoFi and Nasdaq is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Nasdaq Benchmark Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq Benchmark Energy 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 Benchmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq Benchmark Energy has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Nasdaq Benchmark go up and down completely randomly.
Pair Corralation between SoFi Technologies and Nasdaq Benchmark
Given the investment horizon of 90 days SoFi Technologies is expected to generate 2.69 times more return on investment than Nasdaq Benchmark. However, SoFi Technologies is 2.69 times more volatile than Nasdaq Benchmark Energy. It trades about 0.35 of its potential returns per unit of risk. Nasdaq Benchmark Energy is currently generating about -0.46 per unit of risk. If you would invest 1,393 in SoFi Technologies on September 19, 2024 and sell it today you would earn a total of 273.00 from holding SoFi Technologies or generate 19.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SoFi Technologies vs. Nasdaq Benchmark Energy
Performance |
| Timeline |
SoFi Technologies and Nasdaq Benchmark Volatility Contrast
Predicted Return Density |
| Returns |
SoFi Technologies
Pair trading matchups for SoFi Technologies
Nasdaq Benchmark Energy
Pair trading matchups for Nasdaq Benchmark
Pair Trading with SoFi Technologies and Nasdaq Benchmark
The main advantage of trading using opposite SoFi Technologies and Nasdaq Benchmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Nasdaq Benchmark 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 Benchmark will offset losses from the drop in Nasdaq Benchmark'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 Benchmark vs. Radcom | Nasdaq Benchmark vs. Ziff Davis | Nasdaq Benchmark vs. Sphere Entertainment Co | Nasdaq Benchmark vs. WiMi Hologram Cloud |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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