Correlation Between Smart Share and OneSpaWorld Holdings
Can any of the company-specific risk be diversified away by investing in both Smart Share and OneSpaWorld Holdings 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 Smart Share and OneSpaWorld Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Share Global and OneSpaWorld Holdings, you can compare the effects of market volatilities on Smart Share and OneSpaWorld Holdings 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 Smart Share with a short position of OneSpaWorld Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Share and OneSpaWorld Holdings.
Diversification Opportunities for Smart Share and OneSpaWorld Holdings
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Smart and OneSpaWorld is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Smart Share Global and OneSpaWorld Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpaWorld Holdings and Smart Share 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 Smart Share Global are associated (or correlated) with OneSpaWorld Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSpaWorld Holdings has no effect on the direction of Smart Share i.e., Smart Share and OneSpaWorld Holdings go up and down completely randomly.
Pair Corralation between Smart Share and OneSpaWorld Holdings
Allowing for the 90-day total investment horizon Smart Share Global is expected to under-perform the OneSpaWorld Holdings. In addition to that, Smart Share is 2.31 times more volatile than OneSpaWorld Holdings. It trades about 0.0 of its total potential returns per unit of risk. OneSpaWorld Holdings is currently generating about 0.07 per unit of volatility. If you would invest 1,089 in OneSpaWorld Holdings on August 27, 2024 and sell it today you would earn a total of 850.00 from holding OneSpaWorld Holdings or generate 78.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Smart Share Global vs. OneSpaWorld Holdings
Performance |
| Timeline |
| Smart Share Global |
| OneSpaWorld Holdings |
Smart Share and OneSpaWorld Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Share and OneSpaWorld Holdings
The main advantage of trading using opposite Smart Share and OneSpaWorld Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Share position performs unexpectedly, OneSpaWorld Holdings 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 OneSpaWorld Holdings will offset losses from the drop in OneSpaWorld Holdings' long position.| Smart Share vs. Frontdoor | Smart Share vs. Bright Horizons Family | Smart Share vs. Mister Car Wash | Smart Share vs. Carriage Services |
| OneSpaWorld Holdings vs. Bright Horizons Family | OneSpaWorld Holdings vs. Smart Share Global | OneSpaWorld Holdings vs. Mister Car Wash | OneSpaWorld Holdings vs. Rollins |
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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