Correlation Between SoundHound and Nogin
Can any of the company-specific risk be diversified away by investing in both SoundHound and Nogin 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 SoundHound and Nogin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoundHound AI and Nogin Inc, you can compare the effects of market volatilities on SoundHound and Nogin 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 SoundHound with a short position of Nogin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoundHound and Nogin.
Diversification Opportunities for SoundHound and Nogin
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SoundHound and Nogin is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding SoundHound AI and Nogin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nogin Inc and SoundHound 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 SoundHound AI are associated (or correlated) with Nogin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nogin Inc has no effect on the direction of SoundHound i.e., SoundHound and Nogin go up and down completely randomly.
Pair Corralation between SoundHound and Nogin
If you would invest 612.00 in SoundHound AI on August 27, 2024 and sell it today you would earn a total of 191.00 from holding SoundHound AI or generate 31.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SoundHound AI vs. Nogin Inc
Performance |
| Timeline |
| SoundHound AI |
| Nogin Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SoundHound and Nogin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoundHound and Nogin
The main advantage of trading using opposite SoundHound and Nogin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoundHound position performs unexpectedly, Nogin 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 Nogin will offset losses from the drop in Nogin's long position.| SoundHound vs. Snowflake | SoundHound vs. Zoom Video Communications | SoundHound vs. Shopify | SoundHound vs. Workday |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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