Correlation Between ProStar Holdings and Shotspotter
Can any of the company-specific risk be diversified away by investing in both ProStar Holdings 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 ProStar Holdings and Shotspotter into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ProStar Holdings and Shotspotter, you can compare the effects of market volatilities on ProStar Holdings 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 ProStar Holdings with a short position of Shotspotter. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProStar Holdings and Shotspotter.
Diversification Opportunities for ProStar Holdings and Shotspotter
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ProStar and Shotspotter is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding ProStar Holdings and Shotspotter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shotspotter and ProStar Holdings 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 ProStar Holdings 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 ProStar Holdings i.e., ProStar Holdings and Shotspotter go up and down completely randomly.
Pair Corralation between ProStar Holdings and Shotspotter
Assuming the 90 days horizon ProStar Holdings is expected to generate 1.78 times more return on investment than Shotspotter. However, ProStar Holdings is 1.78 times more volatile than Shotspotter. It trades about 0.01 of its potential returns per unit of risk. Shotspotter is currently generating about 0.0 per unit of risk. If you would invest 10.00 in ProStar Holdings on September 2, 2024 and sell it today you would lose (2.00) from holding ProStar Holdings or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
ProStar Holdings vs. Shotspotter
Performance |
| Timeline |
| ProStar Holdings |
| Shotspotter |
ProStar Holdings and Shotspotter Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ProStar Holdings and Shotspotter
The main advantage of trading using opposite ProStar Holdings and Shotspotter positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProStar Holdings 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.| ProStar Holdings vs. Waldencast Acquisition Corp | ProStar Holdings vs. Alkami Technology | ProStar Holdings vs. ADEIA P | ProStar Holdings vs. Paycor HCM |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |