Correlation Between CNVISION MEDIA and SOFI TECHNOLOGIES
Can any of the company-specific risk be diversified away by investing in both CNVISION MEDIA 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 CNVISION MEDIA and SOFI TECHNOLOGIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CNVISION MEDIA and SOFI TECHNOLOGIES, you can compare the effects of market volatilities on CNVISION MEDIA 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 CNVISION MEDIA with a short position of SOFI TECHNOLOGIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of CNVISION MEDIA and SOFI TECHNOLOGIES.
Diversification Opportunities for CNVISION MEDIA and SOFI TECHNOLOGIES
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CNVISION and SOFI is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CNVISION MEDIA and SOFI TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFI TECHNOLOGIES and CNVISION MEDIA 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 CNVISION MEDIA 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 CNVISION MEDIA i.e., CNVISION MEDIA and SOFI TECHNOLOGIES go up and down completely randomly.
Pair Corralation between CNVISION MEDIA and SOFI TECHNOLOGIES
Assuming the 90 days trading horizon CNVISION MEDIA is expected to generate 0.76 times more return on investment than SOFI TECHNOLOGIES. However, CNVISION MEDIA is 1.32 times less risky than SOFI TECHNOLOGIES. It trades about 0.03 of its potential returns per unit of risk. SOFI TECHNOLOGIES is currently generating about -0.05 per unit of risk. If you would invest 5.70 in CNVISION MEDIA on December 27, 2024 and sell it today you would earn a total of 0.20 from holding CNVISION MEDIA or generate 3.51% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CNVISION MEDIA vs. SOFI TECHNOLOGIES
Performance |
Timeline |
CNVISION MEDIA |
SOFI TECHNOLOGIES |
CNVISION MEDIA and SOFI TECHNOLOGIES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CNVISION MEDIA and SOFI TECHNOLOGIES
The main advantage of trading using opposite CNVISION MEDIA and SOFI TECHNOLOGIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CNVISION MEDIA 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.CNVISION MEDIA vs. THORNEY TECHS LTD | CNVISION MEDIA vs. HITECH DEVELOPMENT WIR | CNVISION MEDIA vs. Kingdee International Software | CNVISION MEDIA vs. GLG LIFE TECH |
SOFI TECHNOLOGIES vs. PKSHA TECHNOLOGY INC | SOFI TECHNOLOGIES vs. Alfa Financial Software | SOFI TECHNOLOGIES vs. Wayside Technology Group | SOFI TECHNOLOGIES vs. SPARTAN STORES |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |