Correlation Between SoFi Technologies and Tingyi Holding
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Tingyi Holding 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 Tingyi Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Tingyi Holding Corp, you can compare the effects of market volatilities on SoFi Technologies and Tingyi Holding 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 Tingyi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Tingyi Holding.
Diversification Opportunities for SoFi Technologies and Tingyi Holding
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SoFi and Tingyi is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Tingyi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingyi Holding Corp 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 Tingyi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingyi Holding Corp has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Tingyi Holding go up and down completely randomly.
Pair Corralation between SoFi Technologies and Tingyi Holding
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 Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SoFi Technologies vs. Tingyi Holding Corp
Performance |
| Timeline |
| SoFi Technologies |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SoFi Technologies and Tingyi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and Tingyi Holding
The main advantage of trading using opposite SoFi Technologies and Tingyi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Tingyi Holding 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 Tingyi Holding will offset losses from the drop in Tingyi Holding's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies Class |
| Tingyi Holding vs. Torque Lifestyle Brands | Tingyi Holding vs. Naturally Splendid Enterprises | Tingyi Holding vs. Aryzta AG PK | Tingyi Holding vs. First Pacific |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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