Correlation Between Sharps Technology and Avinger
Can any of the company-specific risk be diversified away by investing in both Sharps Technology and Avinger 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 Sharps Technology and Avinger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharps Technology and Avinger, you can compare the effects of market volatilities on Sharps Technology and Avinger 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 Sharps Technology with a short position of Avinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and Avinger.
Diversification Opportunities for Sharps Technology and Avinger
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sharps and Avinger is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology and Avinger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avinger and Sharps Technology 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 Sharps Technology are associated (or correlated) with Avinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avinger has no effect on the direction of Sharps Technology i.e., Sharps Technology and Avinger go up and down completely randomly.
Pair Corralation between Sharps Technology and Avinger
Given the investment horizon of 90 days Sharps Technology is expected to generate 63.27 times less return on investment than Avinger. But when comparing it to its historical volatility, Sharps Technology is 10.34 times less risky than Avinger. It trades about 0.02 of its potential returns per unit of risk. Avinger is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 64.00 in Avinger on October 22, 2024 and sell it today you would lose (4.00) from holding Avinger or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharps Technology vs. Avinger
Performance |
| Timeline |
| Sharps Technology |
| Avinger |
Sharps Technology and Avinger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and Avinger
The main advantage of trading using opposite Sharps Technology and Avinger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology position performs unexpectedly, Avinger 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 Avinger will offset losses from the drop in Avinger's long position.| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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