Correlation Between SoFi Technologies and SmartSet Automation
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and SmartSet Automation 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 SmartSet Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and SmartSet Automation LLC, you can compare the effects of market volatilities on SoFi Technologies and SmartSet Automation 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 SmartSet Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and SmartSet Automation.
Diversification Opportunities for SoFi Technologies and SmartSet Automation
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SoFi and SmartSet is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and SmartSet Automation LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartSet Automation LLC 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 SmartSet Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartSet Automation LLC has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and SmartSet Automation go up and down completely randomly.
Pair Corralation between SoFi Technologies and SmartSet Automation
Given the investment horizon of 90 days SoFi Technologies is expected to generate 0.29 times more return on investment than SmartSet Automation. However, SoFi Technologies is 3.43 times less risky than SmartSet Automation. It trades about 0.48 of its potential returns per unit of risk. SmartSet Automation LLC is currently generating about 0.04 per unit of risk. If you would invest 795.00 in SoFi Technologies on August 28, 2024 and sell it today you would earn a total of 775.00 from holding SoFi Technologies or generate 97.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SoFi Technologies vs. SmartSet Automation LLC
Performance |
| Timeline |
| SoFi Technologies |
| SmartSet Automation LLC |
SoFi Technologies and SmartSet Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and SmartSet Automation
The main advantage of trading using opposite SoFi Technologies and SmartSet Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, SmartSet Automation 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 SmartSet Automation will offset losses from the drop in SmartSet Automation's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies |
| SmartSet Automation vs. Copa Holdings SA | SmartSet Automation vs. United Airlines Holdings | SmartSet Automation vs. Delta Air Lines | SmartSet Automation vs. SkyWest |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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