Correlation Between Sharps Technology and Essilor International
Can any of the company-specific risk be diversified away by investing in both Sharps Technology and Essilor International 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 Essilor International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharps Technology and Essilor International SA, you can compare the effects of market volatilities on Sharps Technology and Essilor International 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 Essilor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and Essilor International.
Diversification Opportunities for Sharps Technology and Essilor International
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sharps and Essilor is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology and Essilor International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Essilor International 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 Essilor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essilor International has no effect on the direction of Sharps Technology i.e., Sharps Technology and Essilor International go up and down completely randomly.
Pair Corralation between Sharps Technology and Essilor International
Given the investment horizon of 90 days Sharps Technology is expected to under-perform the Essilor International. In addition to that, Sharps Technology is 11.17 times more volatile than Essilor International SA. It trades about -0.31 of its total potential returns per unit of risk. Essilor International SA is currently generating about 0.64 per unit of volatility. If you would invest 12,610 in Essilor International SA on November 18, 2024 and sell it today you would earn a total of 2,817 from holding Essilor International SA or generate 22.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharps Technology vs. Essilor International SA
Performance |
| Timeline |
| Sharps Technology |
| Essilor International |
Sharps Technology and Essilor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and Essilor International
The main advantage of trading using opposite Sharps Technology and Essilor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology position performs unexpectedly, Essilor International 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 Essilor International will offset losses from the drop in Essilor International's long position.| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
| Essilor International vs. Sysmex Corp | Essilor International vs. Straumann Holding AG | Essilor International vs. Coloplast AS | Essilor International vs. EssilorLuxottica Socit anonyme |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |