Correlation Between SoftBank Group and Wheaton Precious
Can any of the company-specific risk be diversified away by investing in both SoftBank Group and Wheaton Precious 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 Wheaton Precious 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 Wheaton Precious Metals, you can compare the effects of market volatilities on SoftBank Group and Wheaton Precious 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 Wheaton Precious. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoftBank Group and Wheaton Precious.
Diversification Opportunities for SoftBank Group and Wheaton Precious
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SoftBank and Wheaton is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding SoftBank Group Corp and Wheaton Precious Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wheaton Precious Metals 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 Wheaton Precious. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wheaton Precious Metals has no effect on the direction of SoftBank Group i.e., SoftBank Group and Wheaton Precious go up and down completely randomly.
Pair Corralation between SoftBank Group and Wheaton Precious
Assuming the 90 days trading horizon SoftBank Group Corp is expected to under-perform the Wheaton Precious. In addition to that, SoftBank Group is 2.09 times more volatile than Wheaton Precious Metals. It trades about -0.45 of its total potential returns per unit of risk. Wheaton Precious Metals is currently generating about 0.22 per unit of volatility. If you would invest 724,817 in Wheaton Precious Metals on September 4, 2025 and sell it today you would earn a total of 91,183 from holding Wheaton Precious Metals or generate 12.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.52% |
| Values | Daily Returns |
SoftBank Group Corp vs. Wheaton Precious Metals
Performance |
| Timeline |
| SoftBank Group Corp |
| Wheaton Precious Metals |
SoftBank Group and Wheaton Precious Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoftBank Group and Wheaton Precious
The main advantage of trading using opposite SoftBank Group and Wheaton Precious positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoftBank Group position performs unexpectedly, Wheaton Precious 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 Wheaton Precious will offset losses from the drop in Wheaton Precious' long position.| SoftBank Group vs. Martin Marietta Materials | SoftBank Group vs. Smithson Investment Trust | SoftBank Group vs. Conygar Investment Co | SoftBank Group vs. Canadian General Investments |
| Wheaton Precious vs. DXC Technology Co | Wheaton Precious vs. Accsys Technologies PLC | Wheaton Precious vs. Micron Technology | Wheaton Precious vs. JB Hunt Transport |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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