Correlation Between SoFi Technologies and Wins Finance
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Wins Finance 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 Wins Finance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Wins Finance Holdings, you can compare the effects of market volatilities on SoFi Technologies and Wins Finance 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 Wins Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Wins Finance.
Diversification Opportunities for SoFi Technologies and Wins Finance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SoFi and Wins is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and Wins Finance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wins Finance Holdings 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 Wins Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wins Finance Holdings has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Wins Finance go up and down completely randomly.
Pair Corralation between SoFi Technologies and Wins Finance
If you would invest (100.00) in Wins Finance Holdings on November 29, 2024 and sell it today you would earn a total of 100.00 from holding Wins Finance Holdings or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SoFi Technologies vs. Wins Finance Holdings
Performance |
| Timeline |
| SoFi Technologies |
| Wins Finance Holdings |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SoFi Technologies and Wins Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoFi Technologies and Wins Finance
The main advantage of trading using opposite SoFi Technologies and Wins Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Wins Finance 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 Wins Finance will offset losses from the drop in Wins Finance's long position.| SoFi Technologies vs. Upstart Holdings | SoFi Technologies vs. Affirm Holdings | SoFi Technologies vs. Lucid Group | SoFi Technologies vs. Palantir Technologies Class |
| Wins Finance vs. SoFi Technologies | Wins Finance vs. PayPal Holdings | Wins Finance vs. Visa Class A | Wins Finance vs. Mastercard |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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