Correlation Between American Scientf and SoundHound

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

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

Diversification Opportunities for American Scientf and SoundHound

0.0

Correlation Coefficient

American Scientf  SoundHound

Pay attention - limited upside

The 3 months correlation between American and SoundHound is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Scientf and SoundHound AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoundHound AI and American Scientf 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 American Scientf 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 American Scientf i.e., American Scientf and SoundHound go up and down completely randomly.

Pair Corralation between American Scientf and SoundHound

If you would invest  919.00  in SoundHound AI on May 5, 2025 and sell it today you would earn a total of  92.00  from holding SoundHound AI or generate 10.01% return on investment over 90 days.

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

American Scientf  vs.  SoundHound AI

American Scientf

Risk-Adjusted Performance

Very Weak

Over the last 90 days American Scientf has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, American Scientf is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

SoundHound AI

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SoundHound AI are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent basic indicators, SoundHound displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with American Scientf and SoundHound

The main advantage of trading using opposite American Scientf and SoundHound positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Scientf 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 American Scientf 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.

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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.