Correlation Between Sharetronic Data and Winner Medical

Can any of the company-specific risk be diversified away by investing in both Sharetronic Data and Winner Medical 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 Sharetronic Data and Winner Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sharetronic Data Technology and Winner Medical Co, you can compare the effects of market volatilities on Sharetronic Data and Winner Medical 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 Sharetronic Data with a short position of Winner Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharetronic Data and Winner Medical.

Diversification Opportunities for Sharetronic Data and Winner Medical

0.86

Correlation Coefficient

Sharetronic Data  Winner Medical

Very poor diversification

The 3 months correlation between Sharetronic and Winner is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Sharetronic Data Technology and Winner Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Medical and Sharetronic Data 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 Sharetronic Data Technology are associated (or correlated) with Winner Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Medical has no effect on the direction of Sharetronic Data i.e., Sharetronic Data and Winner Medical go up and down completely randomly.

Pair Corralation between Sharetronic Data and Winner Medical

Assuming the 90 days trading horizon Sharetronic Data is expected to generate 1.34 times less return on investment than Winner Medical. In addition to that, Sharetronic Data is 1.23 times more volatile than Winner Medical Co. It trades about 0.08 of its total potential returns per unit of risk. Winner Medical Co is currently generating about 0.12 per unit of volatility. If you would invest  3,720  in Winner Medical Co on October 11, 2024 and sell it today you would earn a total of  292.00  from holding Winner Medical Co or generate 7.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Sharetronic Data Technology  vs.  Winner Medical Co

Sharetronic Data Tec

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sharetronic Data Technology are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Sharetronic Data sustained solid returns over the last few months and may actually be approaching a breakup point.

Winner Medical

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Winner Medical Co are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Winner Medical sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sharetronic Data and Winner Medical

The main advantage of trading using opposite Sharetronic Data and Winner Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharetronic Data position performs unexpectedly, Winner Medical 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 Winner Medical will offset losses from the drop in Winner Medical's long position.

The idea behind Sharetronic Data Technology and Winner Medical Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.