Correlation Between SoftBank Group and Science In

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

By analyzing existing cross correlation between SoftBank Group Corp and Science in Sport, you can compare the effects of market volatilities on SoftBank Group and Science In 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 SoftBank Group with a short position of Science In. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoftBank Group and Science In.

Diversification Opportunities for SoftBank Group and Science In

-0.57

Correlation Coefficient

SoftBank Group  Science In

Excellent diversification

The 3 months correlation between SoftBank and Science is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SoftBank Group Corp and Science in Sport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Science in Sport and SoftBank Group 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 SoftBank Group Corp are associated (or correlated) with Science In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Science in Sport has no effect on the direction of SoftBank Group i.e., SoftBank Group and Science In go up and down completely randomly.

Pair Corralation between SoftBank Group and Science In

Assuming the 90 days trading horizon SoftBank Group Corp is expected to generate 10.83 times more return on investment than Science In. However, SoftBank Group is 10.83 times more volatile than Science in Sport. It trades about 0.57 of its potential returns per unit of risk. Science in Sport is currently generating about 0.17 per unit of risk. If you would invest  690,900  in SoftBank Group Corp on April 21, 2025 and sell it today you would earn a total of  432,100  from holding SoftBank Group Corp or generate 62.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	46.15%
Values	Daily Returns

SoftBank Group Corp  vs.  Science in Sport

SoftBank Group Corp

Risk-Adjusted Performance

Excellent

Compared to the overall equity markets, risk-adjusted returns on investments in SoftBank Group Corp are ranked lower than 44 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, SoftBank Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

Science in Sport

Risk-Adjusted Performance

Good

Over the last 90 days Science in Sport has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Science In is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with SoftBank Group and Science In

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

The idea behind SoftBank Group Corp and Science in Sport 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.