Correlation Between Sharps Technology and Nexgel
Can any of the company-specific risk be diversified away by investing in both Sharps Technology and Nexgel 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 Nexgel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharps Technology and Nexgel Inc, you can compare the effects of market volatilities on Sharps Technology and Nexgel 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 Nexgel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and Nexgel.
Diversification Opportunities for Sharps Technology and Nexgel
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sharps and Nexgel is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology and Nexgel Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexgel Inc 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 Nexgel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexgel Inc has no effect on the direction of Sharps Technology i.e., Sharps Technology and Nexgel go up and down completely randomly.
Pair Corralation between Sharps Technology and Nexgel
Given the investment horizon of 90 days Sharps Technology is expected to generate 1.26 times more return on investment than Nexgel. However, Sharps Technology is 1.26 times more volatile than Nexgel Inc. It trades about 0.22 of its potential returns per unit of risk. Nexgel Inc is currently generating about 0.1 per unit of risk. If you would invest 274.00 in Sharps Technology on August 24, 2024 and sell it today you would earn a total of 79.00 from holding Sharps Technology or generate 28.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharps Technology vs. Nexgel Inc
Performance |
| Timeline |
| Sharps Technology |
| Nexgel Inc |
Sharps Technology and Nexgel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and Nexgel
The main advantage of trading using opposite Sharps Technology and Nexgel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology position performs unexpectedly, Nexgel 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 Nexgel will offset losses from the drop in Nexgel's long position.| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
| Nexgel vs. Teleflex Incorporated | Nexgel vs. The Cooper Companies, | Nexgel vs. West Pharmaceutical Services | Nexgel vs. ICU Medical |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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