Correlation Between Sharps Technology and Jeffs Brands
Can any of the company-specific risk be diversified away by investing in both Sharps Technology and Jeffs Brands 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 Jeffs Brands 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 Jeffs Brands, you can compare the effects of market volatilities on Sharps Technology and Jeffs Brands 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 Jeffs Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and Jeffs Brands.
Diversification Opportunities for Sharps Technology and Jeffs Brands
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sharps and Jeffs is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology Warrant and Jeffs Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jeffs Brands 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 Jeffs Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jeffs Brands has no effect on the direction of Sharps Technology i.e., Sharps Technology and Jeffs Brands go up and down completely randomly.
Pair Corralation between Sharps Technology and Jeffs Brands
Assuming the 90 days horizon Sharps Technology Warrant is expected to generate 2.11 times more return on investment than Jeffs Brands. However, Sharps Technology is 2.11 times more volatile than Jeffs Brands. It trades about 0.12 of its potential returns per unit of risk. Jeffs Brands is currently generating about 0.06 per unit of risk. If you would invest 13.00 in Sharps Technology Warrant on August 27, 2024 and sell it today you would lose (10.00) from holding Sharps Technology Warrant or give up 76.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.76% |
| Values | Daily Returns |
Sharps Technology Warrant vs. Jeffs Brands
Performance |
| Timeline |
| Sharps Technology Warrant |
| Jeffs Brands |
Sharps Technology and Jeffs Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sharps Technology and Jeffs Brands
The main advantage of trading using opposite Sharps Technology and Jeffs Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology position performs unexpectedly, Jeffs Brands 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 Jeffs Brands will offset losses from the drop in Jeffs Brands' long position.| Sharps Technology vs. Sharps Technology | Sharps Technology vs. Tenon Medical | Sharps Technology vs. Scisparc | Sharps Technology vs. OKYO Pharma Ltd |
| Jeffs Brands vs. Hour Loop | Jeffs Brands vs. Kidpik Corp | Jeffs Brands vs. MOGU Inc | Jeffs Brands vs. Jowell Global |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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