Correlation Between ATRESMEDIA and SOFI TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both ATRESMEDIA and SOFI TECHNOLOGIES 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 ATRESMEDIA and SOFI TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRESMEDIA and SOFI TECHNOLOGIES, you can compare the effects of market volatilities on ATRESMEDIA and SOFI TECHNOLOGIES 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 ATRESMEDIA with a short position of SOFI TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRESMEDIA and SOFI TECHNOLOGIES.
Diversification Opportunities for ATRESMEDIA and SOFI TECHNOLOGIES
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATRESMEDIA and SOFI is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding ATRESMEDIA and SOFI TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFI TECHNOLOGIES and ATRESMEDIA 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 ATRESMEDIA are associated (or correlated) with SOFI TECHNOLOGIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOFI TECHNOLOGIES has no effect on the direction of ATRESMEDIA i.e., ATRESMEDIA and SOFI TECHNOLOGIES go up and down completely randomly.
Pair Corralation between ATRESMEDIA and SOFI TECHNOLOGIES
Assuming the 90 days trading horizon ATRESMEDIA is expected to generate 2.51 times less return on investment than SOFI TECHNOLOGIES. But when comparing it to its historical volatility, ATRESMEDIA is 3.15 times less risky than SOFI TECHNOLOGIES. It trades about 0.08 of its potential returns per unit of risk. SOFI TECHNOLOGIES is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 640.00 in SOFI TECHNOLOGIES on November 5, 2024 and sell it today you would earn a total of 879.00 from holding SOFI TECHNOLOGIES or generate 137.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATRESMEDIA vs. SOFI TECHNOLOGIES
Performance |
| Timeline |
| ATRESMEDIA |
| SOFI TECHNOLOGIES |
ATRESMEDIA and SOFI TECHNOLOGIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRESMEDIA and SOFI TECHNOLOGIES
The main advantage of trading using opposite ATRESMEDIA and SOFI TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRESMEDIA position performs unexpectedly, SOFI TECHNOLOGIES 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 SOFI TECHNOLOGIES will offset losses from the drop in SOFI TECHNOLOGIES's long position.| ATRESMEDIA vs. United Insurance Holdings | ATRESMEDIA vs. SENECA FOODS A | ATRESMEDIA vs. UNIQA INSURANCE GR | ATRESMEDIA vs. Insurance Australia Group |
| SOFI TECHNOLOGIES vs. MEDICAL FACILITIES NEW | SOFI TECHNOLOGIES vs. Constellation Software | SOFI TECHNOLOGIES vs. CHINA TONTINE WINES | SOFI TECHNOLOGIES vs. Kingdee International Software |
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 Stocks Directory module to find actively traded stocks across global markets.
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