Correlation Between Jeffs Brands and Sharps Technology
Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Sharps Technology 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 Jeffs Brands and Sharps Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jeffs Brands and Sharps Technology Warrant, you can compare the effects of market volatilities on Jeffs Brands and Sharps Technology 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 Jeffs Brands with a short position of Sharps Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Sharps Technology.
Diversification Opportunities for Jeffs Brands and Sharps Technology
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jeffs and Sharps is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Sharps Technology Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharps Technology Warrant and Jeffs Brands 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 Jeffs Brands are associated (or correlated) with Sharps Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharps Technology Warrant has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Sharps Technology go up and down completely randomly.
Pair Corralation between Jeffs Brands and Sharps Technology
Given the investment horizon of 90 days Jeffs Brands is expected to under-perform the Sharps Technology. But the stock apears to be less risky and, when comparing its historical volatility, Jeffs Brands is 5.32 times less risky than Sharps Technology. The stock trades about -0.14 of its potential returns per unit of risk. The Sharps Technology Warrant is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4.13 in Sharps Technology Warrant on November 3, 2024 and sell it today you would lose (0.49) from holding Sharps Technology Warrant or give up 11.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jeffs Brands vs. Sharps Technology Warrant
Performance |
| Timeline |
| Jeffs Brands |
| Sharps Technology Warrant |
Jeffs Brands and Sharps Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jeffs Brands and Sharps Technology
The main advantage of trading using opposite Jeffs Brands and Sharps Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jeffs Brands position performs unexpectedly, Sharps Technology 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 Sharps Technology will offset losses from the drop in Sharps Technology's long position.| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
| Sharps Technology vs. Sharps Technology | Sharps Technology vs. Tenon Medical | Sharps Technology vs. Scisparc | Sharps Technology vs. OKYO Pharma Ltd |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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