Correlation Between WixCom and SoundHound

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

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

Diversification Opportunities for WixCom and SoundHound

0.14

Correlation Coefficient

WixCom  SoundHound

Average diversification

The 3 months correlation between WixCom and SoundHound is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding WixCom and SoundHound AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoundHound AI and WixCom 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 WixCom are associated (or correlated) with SoundHound. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SoundHound AI has no effect on the direction of WixCom i.e., WixCom and SoundHound go up and down completely randomly.

Pair Corralation between WixCom and SoundHound

Considering the 90-day investment horizon WixCom is expected to under-perform the SoundHound. But the stock apears to be less risky and, when comparing its historical volatility, WixCom is 1.73 times less risky than SoundHound. The stock trades about -0.06 of its potential returns per unit of risk. The SoundHound AI is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  1,134  in SoundHound AI on July 22, 2025 and sell it today you would earn a total of  768.00  from holding SoundHound AI or generate 67.72% return on investment over 90 days.

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

WixCom  vs.  SoundHound AI

WixCom

Risk-Adjusted Performance

Weakest

Over the last 90 days WixCom has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

SoundHound AI

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SoundHound AI are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, SoundHound displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with WixCom and SoundHound

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

The idea behind WixCom and SoundHound AI 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.