Correlation Between Sharps Technology and BioLife Sciences
Can any of the company-specific risk be diversified away by investing in both Sharps Technology and BioLife Sciences 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 BioLife Sciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharps Technology and BioLife Sciences, you can compare the effects of market volatilities on Sharps Technology and BioLife Sciences 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 BioLife Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and BioLife Sciences.
Diversification Opportunities for Sharps Technology and BioLife Sciences
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sharps and BioLife is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology and BioLife Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Sciences 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 BioLife Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Sciences has no effect on the direction of Sharps Technology i.e., Sharps Technology and BioLife Sciences go up and down completely randomly.
Pair Corralation between Sharps Technology and BioLife Sciences
Given the investment horizon of 90 days Sharps Technology is expected to under-perform the BioLife Sciences. But the stock apears to be less risky and, when comparing its historical volatility, Sharps Technology is 10.06 times less risky than BioLife Sciences. The stock trades about -0.05 of its potential returns per unit of risk. The BioLife Sciences is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.20 in BioLife Sciences on November 2, 2024 and sell it today you would lose (0.19) from holding BioLife Sciences or give up 95.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Sharps Technology vs. BioLife Sciences
Performance |
| Timeline |
| Sharps Technology |
| BioLife Sciences |
Sharps Technology and BioLife Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and BioLife Sciences
The main advantage of trading using opposite Sharps Technology and BioLife Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology position performs unexpectedly, BioLife Sciences 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 BioLife Sciences will offset losses from the drop in BioLife Sciences' long position.| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
| BioLife Sciences vs. Innerscope Advertising Agency | BioLife Sciences vs. CeCors Inc | BioLife Sciences vs. GlucoTrack | BioLife Sciences vs. Sharps Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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