Correlation Between Freight Technologies and Shotspotter
Can any of the company-specific risk be diversified away by investing in both Freight Technologies 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 Freight Technologies and Shotspotter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freight Technologies and Shotspotter, you can compare the effects of market volatilities on Freight Technologies 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 Freight Technologies with a short position of Shotspotter. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freight Technologies and Shotspotter.
Diversification Opportunities for Freight Technologies and Shotspotter
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Freight and Shotspotter is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Freight Technologies and Shotspotter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shotspotter and Freight Technologies 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 Freight Technologies 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 Freight Technologies i.e., Freight Technologies and Shotspotter go up and down completely randomly.
Pair Corralation between Freight Technologies and Shotspotter
Given the investment horizon of 90 days Freight Technologies is expected to under-perform the Shotspotter. But the stock apears to be less risky and, when comparing its historical volatility, Freight Technologies is 1.03 times less risky than Shotspotter. The stock trades about -0.26 of its potential returns per unit of risk. The Shotspotter is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,150 in Shotspotter on August 28, 2024 and sell it today you would earn a total of 158.00 from holding Shotspotter or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freight Technologies vs. Shotspotter
Performance |
| Timeline |
| Freight Technologies |
| Shotspotter |
Freight Technologies and Shotspotter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freight Technologies and Shotspotter
The main advantage of trading using opposite Freight Technologies and Shotspotter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freight Technologies 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.| Freight Technologies vs. OLB Group | Freight Technologies vs. Friendable | Freight Technologies vs. KwikClick |
| Shotspotter vs. Enfusion | Shotspotter vs. ON24 Inc | Shotspotter vs. Paycor HCM | Shotspotter vs. Research Solutions |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |