Correlation Between SoFi Technologies and Bank Mandiri
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Bank Mandiri 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 Bank Mandiri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Bank Mandiri Persero, you can compare the effects of market volatilities on SoFi Technologies and Bank Mandiri 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 Bank Mandiri. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Bank Mandiri.
Diversification Opportunities for SoFi Technologies and Bank Mandiri
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SoFi and Bank is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Bank Mandiri Persero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Mandiri Persero 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 Bank Mandiri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Mandiri Persero has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Bank Mandiri go up and down completely randomly.
Pair Corralation between SoFi Technologies and Bank Mandiri
Given the investment horizon of 90 days SoFi Technologies is expected to generate 1.63 times more return on investment than Bank Mandiri. However, SoFi Technologies is 1.63 times more volatile than Bank Mandiri Persero. It trades about 0.22 of its potential returns per unit of risk. Bank Mandiri Persero is currently generating about 0.04 per unit of risk. If you would invest 689.00 in SoFi Technologies on August 24, 2024 and sell it today you would earn a total of 812.00 from holding SoFi Technologies or generate 117.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SoFi Technologies vs. Bank Mandiri Persero
Performance |
| Timeline |
| SoFi Technologies |
| Bank Mandiri Persero |
SoFi Technologies and Bank Mandiri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and Bank Mandiri
The main advantage of trading using opposite SoFi Technologies and Bank Mandiri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Bank Mandiri 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 Bank Mandiri will offset losses from the drop in Bank Mandiri's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies |
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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