Correlation Between Sharps Technology and Strats SM
Can any of the company-specific risk be diversified away by investing in both Sharps Technology and Strats SM 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 Strats SM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharps Technology Warrant and Strats SM Trust, you can compare the effects of market volatilities on Sharps Technology and Strats SM 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 Strats SM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and Strats SM.
Diversification Opportunities for Sharps Technology and Strats SM
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sharps and Strats is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology Warrant and Strats SM Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strats SM Trust 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 Warrant are associated (or correlated) with Strats SM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strats SM Trust has no effect on the direction of Sharps Technology i.e., Sharps Technology and Strats SM go up and down completely randomly.
Pair Corralation between Sharps Technology and Strats SM
Assuming the 90 days horizon Sharps Technology Warrant is expected to generate 41.59 times more return on investment than Strats SM. However, Sharps Technology is 41.59 times more volatile than Strats SM Trust. It trades about 0.09 of its potential returns per unit of risk. Strats SM Trust is currently generating about 0.07 per unit of risk. If you would invest 3.98 in Sharps Technology Warrant on November 3, 2024 and sell it today you would lose (0.34) from holding Sharps Technology Warrant or give up 8.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Sharps Technology Warrant vs. Strats SM Trust
Performance |
| Timeline |
| Sharps Technology Warrant |
| Strats SM Trust |
Sharps Technology and Strats SM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and Strats SM
The main advantage of trading using opposite Sharps Technology and Strats SM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology position performs unexpectedly, Strats SM 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 Strats SM will offset losses from the drop in Strats SM's long position.| Sharps Technology vs. Sharps Technology | Sharps Technology vs. Tenon Medical | Sharps Technology vs. Scisparc | Sharps Technology vs. OKYO Pharma Ltd |
| Strats SM vs. STRATS SM Trust | Strats SM vs. STRATSSM Certificates series | Strats SM vs. SYNTHETIC FIXED INCOME | Strats SM vs. Strats SM Trust |
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 Stocks Directory module to find actively traded stocks across global markets.
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