Correlation Between Sharps Technology and HOYA
Can any of the company-specific risk be diversified away by investing in both Sharps Technology and HOYA 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 HOYA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharps Technology and HOYA Corporation, you can compare the effects of market volatilities on Sharps Technology and HOYA 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 HOYA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and HOYA.
Diversification Opportunities for Sharps Technology and HOYA
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sharps and HOYA is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology and HOYA Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA 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 HOYA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA has no effect on the direction of Sharps Technology i.e., Sharps Technology and HOYA go up and down completely randomly.
Pair Corralation between Sharps Technology and HOYA
Given the investment horizon of 90 days Sharps Technology is expected to under-perform the HOYA. In addition to that, Sharps Technology is 3.1 times more volatile than HOYA Corporation. It trades about -0.01 of its total potential returns per unit of risk. HOYA Corporation is currently generating about 0.04 per unit of volatility. If you would invest 10,100 in HOYA Corporation on September 3, 2024 and sell it today you would earn a total of 3,286 from holding HOYA Corporation or generate 32.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 71.52% |
| Values | Daily Returns |
Sharps Technology vs. HOYA Corp.
Performance |
| Timeline |
| Sharps Technology |
| HOYA |
Sharps Technology and HOYA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and HOYA
The main advantage of trading using opposite Sharps Technology and HOYA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology position performs unexpectedly, HOYA 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 HOYA will offset losses from the drop in HOYA's long position.| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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