Correlation Between SoundHound and Icad
Can any of the company-specific risk be diversified away by investing in both SoundHound and Icad 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 Icad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoundHound AI and icad inc, you can compare the effects of market volatilities on SoundHound and Icad 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 Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoundHound and Icad.
Diversification Opportunities for SoundHound and Icad
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SoundHound and Icad is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SoundHound AI and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc 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 Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of SoundHound i.e., SoundHound and Icad go up and down completely randomly.
Pair Corralation between SoundHound and Icad
Given the investment horizon of 90 days SoundHound AI is expected to generate 1.38 times more return on investment than Icad. However, SoundHound is 1.38 times more volatile than icad inc. It trades about 0.06 of its potential returns per unit of risk. icad inc is currently generating about 0.05 per unit of risk. If you would invest 598.00 in SoundHound AI on December 5, 2024 and sell it today you would earn a total of 374.00 from holding SoundHound AI or generate 62.54% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SoundHound AI vs. icad inc
Performance |
Timeline |
SoundHound AI |
icad inc |
SoundHound and Icad Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SoundHound and Icad
The main advantage of trading using opposite SoundHound and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoundHound position performs unexpectedly, Icad 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 Icad will offset losses from the drop in Icad's long position.SoundHound vs. Snowflake | SoundHound vs. Zoom Video Communications | SoundHound vs. Shopify | SoundHound vs. Workday |
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.
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