Correlation Between SoFi Technologies and Gmo Implementation

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both SoFi Technologies and Gmo Implementation 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 Gmo Implementation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoFi Technologies and Gmo Implementation Fund, you can compare the effects of market volatilities on SoFi Technologies and Gmo Implementation 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 Gmo Implementation. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoFi Technologies and Gmo Implementation.

Diversification Opportunities for SoFi Technologies and Gmo Implementation

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between SoFi and Gmo is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding SoFi Technologies and GMO IMPLEMENTATION FUND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Implementation Fund 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 Gmo Implementation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Implementation Fund has no effect on the direction of SoFi Technologies i.e., SoFi Technologies and Gmo Implementation go up and down completely randomly.

Pair Corralation between SoFi Technologies and Gmo Implementation

Given the investment horizon of 90 days SoFi Technologies is expected to generate 9.48 times more return on investment than Gmo Implementation. However, SoFi Technologies is 9.48 times more volatile than Gmo Implementation Fund. It trades about 0.04 of its potential returns per unit of risk. Gmo Implementation Fund is currently generating about 0.12 per unit of risk. If you would invest  589.00  in SoFi Technologies on December 30, 2023 and sell it today you would earn a total of  141.00  from holding SoFi Technologies or generate 23.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy99.6%
ValuesDaily Returns

SoFi Technologies  vs.  GMO IMPLEMENTATION FUND

 Performance 
       Timeline  
SoFi Technologies 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days SoFi Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in April 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.
Gmo Implementation Fund 

Risk-Adjusted Performance

11 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Gmo Implementation Fund are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Gmo Implementation is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

SoFi Technologies and Gmo Implementation Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with SoFi Technologies and Gmo Implementation

The main advantage of trading using opposite SoFi Technologies and Gmo Implementation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoFi Technologies position performs unexpectedly, Gmo Implementation 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 Gmo Implementation will offset losses from the drop in Gmo Implementation's long position.
The idea behind SoFi Technologies and Gmo Implementation Fund 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.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

Other Complementary Tools

Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Volatility Analysis
Get historical volatility and risk analysis based on latest market data