Correlation Between SoundHound and Nasdaq CTA
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By analyzing existing cross correlation between SoundHound AI and Nasdaq CTA Artificial, you can compare the effects of market volatilities on SoundHound and Nasdaq CTA 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 Nasdaq CTA. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoundHound and Nasdaq CTA.
Diversification Opportunities for SoundHound and Nasdaq CTA
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SoundHound and Nasdaq is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SoundHound AI and Nasdaq CTA Artificial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nasdaq CTA Artificial 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 Nasdaq CTA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nasdaq CTA Artificial has no effect on the direction of SoundHound i.e., SoundHound and Nasdaq CTA go up and down completely randomly.
Pair Corralation between SoundHound and Nasdaq CTA
Given the investment horizon of 90 days SoundHound AI is expected to generate 10.56 times more return on investment than Nasdaq CTA. However, SoundHound is 10.56 times more volatile than Nasdaq CTA Artificial. It trades about 0.57 of its potential returns per unit of risk. Nasdaq CTA Artificial is currently generating about 0.26 per unit of risk. If you would invest 619.00 in SoundHound AI on September 19, 2024 and sell it today you would earn a total of 1,320 from holding SoundHound AI or generate 213.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SoundHound AI vs. Nasdaq CTA Artificial
Performance |
| Timeline |
SoundHound and Nasdaq CTA Volatility Contrast
Predicted Return Density |
| Returns |
SoundHound AI
Pair trading matchups for SoundHound
Nasdaq CTA Artificial
Pair trading matchups for Nasdaq CTA
Pair Trading with SoundHound and Nasdaq CTA
The main advantage of trading using opposite SoundHound and Nasdaq CTA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoundHound position performs unexpectedly, Nasdaq CTA 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 Nasdaq CTA will offset losses from the drop in Nasdaq CTA's long position.| SoundHound vs. Snowflake | SoundHound vs. Zoom Video Communications | SoundHound vs. Shopify | SoundHound vs. Workday |
| Nasdaq CTA vs. Lucid Group | Nasdaq CTA vs. Dana Inc | Nasdaq CTA vs. Thor Industries | Nasdaq CTA vs. PACCAR Inc |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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