Correlation Between SoundHound and Presto Automation
Can any of the company-specific risk be diversified away by investing in both SoundHound and Presto 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 SoundHound and Presto Automation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoundHound AI and Presto Automation, you can compare the effects of market volatilities on SoundHound and Presto 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 SoundHound with a short position of Presto Automation. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoundHound and Presto Automation.
Diversification Opportunities for SoundHound and Presto Automation
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SoundHound and Presto is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SoundHound AI and Presto Automation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presto Automation 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 Presto Automation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presto Automation has no effect on the direction of SoundHound i.e., SoundHound and Presto Automation go up and down completely randomly.
Pair Corralation between SoundHound and Presto Automation
If you would invest (100.00) in Presto Automation on November 18, 2024 and sell it today you would earn a total of 100.00 from holding Presto Automation 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 |
SoundHound AI vs. Presto Automation
Performance |
| Timeline |
| SoundHound AI |
| Presto Automation |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
SoundHound and Presto Automation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoundHound and Presto Automation
The main advantage of trading using opposite SoundHound and Presto Automation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoundHound position performs unexpectedly, Presto 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 Presto Automation will offset losses from the drop in Presto Automation's long position.| SoundHound vs. Snowflake | SoundHound vs. Zoom Video Communications | SoundHound vs. Shopify | SoundHound vs. Workday |
| Presto Automation vs. CXApp Inc | Presto Automation vs. Bullfrog AI Holdings, | Presto Automation vs. Guardforce AI Co | Presto Automation vs. Dermata Therapeutics |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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