Correlation Between Worksport and Stoneridge
Can any of the company-specific risk be diversified away by investing in both Worksport and Stoneridge 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 Worksport and Stoneridge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worksport and Stoneridge, you can compare the effects of market volatilities on Worksport and Stoneridge 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 Worksport with a short position of Stoneridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worksport and Stoneridge.
Diversification Opportunities for Worksport and Stoneridge
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Worksport and Stoneridge is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Worksport and Stoneridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stoneridge and Worksport 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 Worksport are associated (or correlated) with Stoneridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stoneridge has no effect on the direction of Worksport i.e., Worksport and Stoneridge go up and down completely randomly.
Pair Corralation between Worksport and Stoneridge
Given the investment horizon of 90 days Worksport is expected to generate 1.21 times more return on investment than Stoneridge. However, Worksport is 1.21 times more volatile than Stoneridge. It trades about -0.09 of its potential returns per unit of risk. Stoneridge is currently generating about -0.24 per unit of risk. If you would invest 79.00 in Worksport on August 27, 2024 and sell it today you would lose (15.00) from holding Worksport or give up 18.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Worksport vs. Stoneridge
Performance |
| Timeline |
| Worksport |
| Stoneridge |
Worksport and Stoneridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worksport and Stoneridge
The main advantage of trading using opposite Worksport and Stoneridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worksport position performs unexpectedly, Stoneridge 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 Stoneridge will offset losses from the drop in Stoneridge's long position.| Worksport vs. Aeye Inc | Worksport vs. Luminar Technologies | Worksport vs. Modine Manufacturing | Worksport vs. Quantumscape 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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