Correlation Between Sharps Technology and Sight Sciences
Can any of the company-specific risk be diversified away by investing in both Sharps Technology and Sight 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 Sight 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 Sight Sciences, you can compare the effects of market volatilities on Sharps Technology and Sight 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 Sight Sciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and Sight Sciences.
Diversification Opportunities for Sharps Technology and Sight Sciences
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sharps and Sight is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology and Sight Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sight 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 Sight Sciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sight Sciences has no effect on the direction of Sharps Technology i.e., Sharps Technology and Sight Sciences go up and down completely randomly.
Pair Corralation between Sharps Technology and Sight Sciences
Given the investment horizon of 90 days Sharps Technology is expected to generate 1.13 times more return on investment than Sight Sciences. However, Sharps Technology is 1.13 times more volatile than Sight Sciences. It trades about 0.22 of its potential returns per unit of risk. Sight Sciences is currently generating about -0.29 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sharps Technology vs. Sight Sciences
Performance |
| Timeline |
| Sharps Technology |
| Sight Sciences |
Sharps Technology and Sight Sciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and Sight Sciences
The main advantage of trading using opposite Sharps Technology and Sight Sciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology position performs unexpectedly, Sight 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 Sight Sciences will offset losses from the drop in Sight Sciences' long position.| Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
| Sight Sciences vs. Si Bone | Sight Sciences vs. Rapid Micro Biosystems | Sight Sciences vs. Tactile Systems Technology | Sight Sciences vs. Pulmonx Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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