Correlation Between SOFI TECHNOLOGIES and CH Robinson

Can any of the company-specific risk be diversified away by investing in both SOFI TECHNOLOGIES and CH Robinson 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 CH Robinson into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SOFI TECHNOLOGIES and CH Robinson Worldwide, you can compare the effects of market volatilities on SOFI TECHNOLOGIES and CH Robinson 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 CH Robinson. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOFI TECHNOLOGIES and CH Robinson.

Diversification Opportunities for SOFI TECHNOLOGIES and CH Robinson

0.62

Correlation Coefficient

SOFI TECHNOLOGIES  CH Robinson

Poor diversification

The 3 months correlation between SOFI and CH1A is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SOFI TECHNOLOGIES and CH Robinson Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Robinson Worldwide 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 CH Robinson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Robinson Worldwide has no effect on the direction of SOFI TECHNOLOGIES i.e., SOFI TECHNOLOGIES and CH Robinson go up and down completely randomly.

Pair Corralation between SOFI TECHNOLOGIES and CH Robinson

Assuming the 90 days horizon SOFI TECHNOLOGIES is expected to under-perform the CH Robinson. In addition to that, SOFI TECHNOLOGIES is 1.36 times more volatile than CH Robinson Worldwide. It trades about -0.1 of its total potential returns per unit of risk. CH Robinson Worldwide is currently generating about 0.06 per unit of volatility. If you would invest  9,900  in CH Robinson Worldwide on October 8, 2024 and sell it today you would earn a total of  200.00  from holding CH Robinson Worldwide or generate 2.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

SOFI TECHNOLOGIES  vs.  CH Robinson Worldwide

SOFI TECHNOLOGIES

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SOFI TECHNOLOGIES are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, SOFI TECHNOLOGIES reported solid returns over the last few months and may actually be approaching a breakup point.

CH Robinson Worldwide

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CH Robinson Worldwide are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CH Robinson may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with SOFI TECHNOLOGIES and CH Robinson

The main advantage of trading using opposite SOFI TECHNOLOGIES and CH Robinson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOFI TECHNOLOGIES position performs unexpectedly, CH Robinson 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 CH Robinson will offset losses from the drop in CH Robinson's long position.

The idea behind SOFI TECHNOLOGIES and CH Robinson Worldwide pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.