Correlation Between Pinstripes Holdings and Smart Share
Can any of the company-specific risk be diversified away by investing in both Pinstripes Holdings and Smart Share 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 Pinstripes Holdings and Smart Share into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinstripes Holdings and Smart Share Global, you can compare the effects of market volatilities on Pinstripes Holdings and Smart Share 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 Pinstripes Holdings with a short position of Smart Share. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinstripes Holdings and Smart Share.
Diversification Opportunities for Pinstripes Holdings and Smart Share
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pinstripes and Smart is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Pinstripes Holdings and Smart Share Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Share Global and Pinstripes 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 Pinstripes Holdings are associated (or correlated) with Smart Share. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Share Global has no effect on the direction of Pinstripes Holdings i.e., Pinstripes Holdings and Smart Share go up and down completely randomly.
Pair Corralation between Pinstripes Holdings and Smart Share
Given the investment horizon of 90 days Pinstripes Holdings is expected to under-perform the Smart Share. In addition to that, Pinstripes Holdings is 1.3 times more volatile than Smart Share Global. It trades about -0.06 of its total potential returns per unit of risk. Smart Share Global is currently generating about 0.0 per unit of volatility. If you would invest 118.00 in Smart Share Global on August 27, 2024 and sell it today you would lose (49.00) from holding Smart Share Global or give up 41.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinstripes Holdings vs. Smart Share Global
Performance |
| Timeline |
| Pinstripes Holdings |
| Smart Share Global |
Pinstripes Holdings and Smart Share Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinstripes Holdings and Smart Share
The main advantage of trading using opposite Pinstripes Holdings and Smart Share positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinstripes Holdings position performs unexpectedly, Smart Share 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 Smart Share will offset losses from the drop in Smart Share's long position.| Pinstripes Holdings vs. MGIC Investment Corp | Pinstripes Holdings vs. Highway Holdings Limited | Pinstripes Holdings vs. Flexible Solutions International | Pinstripes Holdings vs. Summit Materials |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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