Correlation Between Avinger and Sharps Technology
Can any of the company-specific risk be diversified away by investing in both Avinger and Sharps Technology 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 Avinger and Sharps Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avinger and Sharps Technology, you can compare the effects of market volatilities on Avinger and Sharps Technology 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 Avinger with a short position of Sharps Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avinger and Sharps Technology.
Diversification Opportunities for Avinger and Sharps Technology
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Avinger and Sharps is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Avinger and Sharps Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharps Technology and Avinger 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 Avinger are associated (or correlated) with Sharps Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharps Technology has no effect on the direction of Avinger i.e., Avinger and Sharps Technology go up and down completely randomly.
Pair Corralation between Avinger and Sharps Technology
Given the investment horizon of 90 days Avinger is expected to under-perform the Sharps Technology. But the stock apears to be less risky and, when comparing its historical volatility, Avinger is 1.88 times less risky than Sharps Technology. The stock trades about -0.02 of its potential returns per unit of risk. The Sharps Technology is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 275.00 in Sharps Technology on August 27, 2024 and sell it today you would earn a total of 78.00 from holding Sharps Technology or generate 28.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avinger vs. Sharps Technology
Performance |
| Timeline |
| Avinger |
| Sharps Technology |
Avinger and Sharps Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avinger and Sharps Technology
The main advantage of trading using opposite Avinger and Sharps Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avinger position performs unexpectedly, Sharps Technology 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 Sharps Technology will offset losses from the drop in Sharps Technology's long position.| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |