Correlation Between Core Scientific, and SoundHound
Can any of the company-specific risk be diversified away by investing in both Core Scientific, 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 Core Scientific, and SoundHound into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Core Scientific, Common and SoundHound AI, you can compare the effects of market volatilities on Core Scientific, 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 Core Scientific, with a short position of SoundHound. Check out your portfolio center. Please also check ongoing floating volatility patterns of Core Scientific, and SoundHound.
Diversification Opportunities for Core Scientific, and SoundHound
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Core and SoundHound is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Core Scientific, Common and SoundHound AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SoundHound AI and Core Scientific, 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 Core Scientific, Common 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 Core Scientific, i.e., Core Scientific, and SoundHound go up and down completely randomly.
Pair Corralation between Core Scientific, and SoundHound
Given the investment horizon of 90 days Core Scientific, Common is expected to generate 0.75 times more return on investment than SoundHound. However, Core Scientific, Common is 1.33 times less risky than SoundHound. It trades about 0.05 of its potential returns per unit of risk. SoundHound AI is currently generating about 0.0 per unit of risk. If you would invest 1,368 in Core Scientific, Common on August 25, 2025 and sell it today you would earn a total of 105.00 from holding Core Scientific, Common or generate 7.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Core Scientific, Common vs. SoundHound AI
Performance |
| Timeline |
| Core Scientific, Common |
| SoundHound AI |
Core Scientific, and SoundHound Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Core Scientific, and SoundHound
The main advantage of trading using opposite Core Scientific, and SoundHound positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Core Scientific, 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.| Core Scientific, vs. Arbe Robotics | Core Scientific, vs. DeFi Development Corp | Core Scientific, vs. Marti Technologies | Core Scientific, vs. Stem Inc |
| SoundHound vs. Core Scientific, Common | SoundHound vs. StubHub Holdings, | SoundHound vs. Descartes Systems Group | SoundHound vs. Match Group |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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