Correlation Between Smart Share and One Group
Can any of the company-specific risk be diversified away by investing in both Smart Share and One Group 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 One Group 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 One Group Hospitality, you can compare the effects of market volatilities on Smart Share and One Group 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 One Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Share and One Group.
Diversification Opportunities for Smart Share and One Group
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Smart and One is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Smart Share Global and One Group Hospitality in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Group Hospitality 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 One Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Group Hospitality has no effect on the direction of Smart Share i.e., Smart Share and One Group go up and down completely randomly.
Pair Corralation between Smart Share and One Group
Allowing for the 90-day total investment horizon Smart Share Global is expected to generate 0.14 times more return on investment than One Group. However, Smart Share Global is 7.15 times less risky than One Group. It trades about 0.0 of its potential returns per unit of risk. One Group Hospitality is currently generating about -0.05 per unit of risk. If you would invest 113.00 in Smart Share Global on December 31, 2024 and sell it today you would earn a total of 0.00 from holding Smart Share Global or generate 0.0% 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. One Group Hospitality
Performance |
| Timeline |
| Smart Share Global |
| One Group Hospitality |
Smart Share and One Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Share and One Group
The main advantage of trading using opposite Smart Share and One Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Share position performs unexpectedly, One Group 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 One Group will offset losses from the drop in One Group's long position.| Smart Share vs. Frontdoor | Smart Share vs. Bright Horizons Family | Smart Share vs. Mister Car Wash, | Smart Share vs. Carriage Services |
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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 Stocks Directory module to find actively traded stocks across global markets.
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