Correlation Between Sofi Technologies and Wells Fargo

By analyzing existing cross correlation between Sofi Technologies and Wells Fargo, you can compare the effects of market volatilities on Sofi Technologies and Wells Fargo 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 Wells Fargo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sofi Technologies and Wells Fargo.

Specify exactly 2 symbols:

Can any of the company-specific risk be diversified away by investing in both Sofi Technologies and Wells Fargo 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 Wells Fargo into the same portfolio, which is an essential part of the fundamental portfolio management process.

Diversification Opportunities for Sofi Technologies and Wells Fargo

0.0
  Correlation Coefficient
Sofi Technologies
Wells Fargo

Pay attention - limited upside

The 3 months correlation between Sofi Technologies and Wells is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sofi Technologies and Wells Fargo in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Wells Fargo 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 Wells Fargo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wells Fargo has no effect on the direction of Sofi Technologies i.e., Sofi Technologies and Wells Fargo go up and down completely randomly.

Pair Corralation between Sofi Technologies and Wells Fargo

If you would invest  1,048  in Sofi Technologies on July 24, 2021 and sell it today you would earn a total of  1,010  from holding Sofi Technologies or generate 96.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.44%
ValuesDaily Returns

Sofi Technologies  vs.  Wells Fargo

 Performance (%) 
      Timeline 
Sofi Technologies 
 Sofi Technologies Performance
9 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Sofi Technologies are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal technical and fundamental indicators, Sofi Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Sofi Technologies Price Channel

Wells Fargo 
 Wells Performance
0 of 100
Over the last 90 days Wells Fargo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Wells Fargo is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Sofi Technologies and Wells Fargo Volatility Contrast

 Predicted Return Density 
      Returns 

Pair Trading with Sofi Technologies and Wells Fargo

The main advantage of trading using opposite Sofi Technologies and Wells Fargo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sofi Technologies position performs unexpectedly, Wells Fargo 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 Wells Fargo will offset losses from the drop in Wells Fargo's long position.
The idea behind Sofi Technologies and Wells Fargo 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

Other Complementary Tools

Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go