Correlation Between FEMALE HEALTH and ShotSpotter
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH and ShotSpotter 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 FEMALE HEALTH and ShotSpotter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and ShotSpotter, you can compare the effects of market volatilities on FEMALE HEALTH and ShotSpotter 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 FEMALE HEALTH with a short position of ShotSpotter. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and ShotSpotter.
Diversification Opportunities for FEMALE HEALTH and ShotSpotter
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between FEMALE and ShotSpotter is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and ShotSpotter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ShotSpotter and FEMALE HEALTH 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 FEMALE HEALTH are associated (or correlated) with ShotSpotter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ShotSpotter has no effect on the direction of FEMALE HEALTH i.e., FEMALE HEALTH and ShotSpotter go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and ShotSpotter
Assuming the 90 days trading horizon FEMALE HEALTH is expected to under-perform the ShotSpotter. But the stock apears to be less risky and, when comparing its historical volatility, FEMALE HEALTH is 1.45 times less risky than ShotSpotter. The stock trades about -0.18 of its potential returns per unit of risk. The ShotSpotter is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,050 in ShotSpotter on August 27, 2024 and sell it today you would earn a total of 90.00 from holding ShotSpotter or generate 8.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. ShotSpotter
Performance |
| Timeline |
| FEMALE HEALTH |
| ShotSpotter |
FEMALE HEALTH and ShotSpotter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and ShotSpotter
The main advantage of trading using opposite FEMALE HEALTH and ShotSpotter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH position performs unexpectedly, ShotSpotter 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 ShotSpotter will offset losses from the drop in ShotSpotter's long position.| FEMALE HEALTH vs. GREENX METALS LTD | FEMALE HEALTH vs. Cogent Communications Holdings | FEMALE HEALTH vs. Chunghwa Telecom Co | FEMALE HEALTH vs. Mobilezone Holding AG |
| ShotSpotter vs. CARSALESCOM | ShotSpotter vs. Sinopec Shanghai Petrochemical | ShotSpotter vs. CarsalesCom | ShotSpotter vs. Sanyo Chemical Industries |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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