Correlation Between Cricut and Sonim Technologies
Can any of the company-specific risk be diversified away by investing in both Cricut and Sonim Technologies 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 Cricut and Sonim Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cricut Inc and Sonim Technologies, you can compare the effects of market volatilities on Cricut and Sonim Technologies 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 Cricut with a short position of Sonim Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cricut and Sonim Technologies.
Diversification Opportunities for Cricut and Sonim Technologies
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cricut and Sonim is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc and Sonim Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonim Technologies and Cricut 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 Cricut Inc are associated (or correlated) with Sonim Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonim Technologies has no effect on the direction of Cricut i.e., Cricut and Sonim Technologies go up and down completely randomly.
Pair Corralation between Cricut and Sonim Technologies
Given the investment horizon of 90 days Cricut Inc is expected to generate 0.49 times more return on investment than Sonim Technologies. However, Cricut Inc is 2.05 times less risky than Sonim Technologies. It trades about -0.01 of its potential returns per unit of risk. Sonim Technologies is currently generating about -0.01 per unit of risk. If you would invest 571.00 in Cricut Inc on August 25, 2024 and sell it today you would lose (61.00) from holding Cricut Inc or give up 10.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cricut Inc vs. Sonim Technologies
Performance |
| Timeline |
| Cricut Inc |
| Sonim Technologies |
Cricut and Sonim Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cricut and Sonim Technologies
The main advantage of trading using opposite Cricut and Sonim Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cricut position performs unexpectedly, Sonim Technologies 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 Sonim Technologies will offset losses from the drop in Sonim Technologies' long position.| Cricut vs. D Wave Quantum | Cricut vs. Rigetti Computing | Cricut vs. Super Micro Computer | Cricut vs. Quantum Computing |
| Sonim Technologies vs. D Wave Quantum | Sonim Technologies vs. Rigetti Computing | Sonim Technologies vs. Cricut Inc | Sonim Technologies vs. Quantum Computing |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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