Correlation Between SoundHound and GivBux

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

By analyzing existing cross correlation between SoundHound AI and GivBux Inc, you can compare the effects of market volatilities on SoundHound and GivBux 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 GivBux. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoundHound and GivBux.

Diversification Opportunities for SoundHound and GivBux

0.81

Correlation Coefficient

SoundHound  GivBux

Very poor diversification

The 3 months correlation between SoundHound and GivBux is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SoundHound AI and GivBux Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GivBux 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 GivBux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GivBux Inc has no effect on the direction of SoundHound i.e., SoundHound and GivBux go up and down completely randomly.

Pair Corralation between SoundHound and GivBux

Given the investment horizon of 90 days SoundHound AI is expected to generate 0.67 times more return on investment than GivBux. However, SoundHound AI is 1.5 times less risky than GivBux. It trades about 0.28 of its potential returns per unit of risk. GivBux Inc is currently generating about 0.13 per unit of risk. If you would invest  476.00  in SoundHound AI on September 15, 2024 and sell it today you would earn a total of  1,215  from holding SoundHound AI or generate 255.25% return on investment over 90 days.

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

SoundHound AI  vs.  GivBux Inc

SoundHound AI

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in SoundHound AI are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, SoundHound displayed solid returns over the last few months and may actually be approaching a breakup point.

GivBux Inc

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GivBux Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, GivBux showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SoundHound and GivBux

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

The idea behind SoundHound AI and GivBux Inc 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.