Correlation Between Smart Share and Aterian
Can any of the company-specific risk be diversified away by investing in both Smart Share and Aterian 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 Smart Share and Aterian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Share Global and Aterian, you can compare the effects of market volatilities on Smart Share and Aterian 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 Smart Share with a short position of Aterian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Share and Aterian.
Diversification Opportunities for Smart Share and Aterian
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Smart and Aterian is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Smart Share Global and Aterian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aterian and Smart Share 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 Smart Share Global are associated (or correlated) with Aterian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aterian has no effect on the direction of Smart Share i.e., Smart Share and Aterian go up and down completely randomly.
Pair Corralation between Smart Share and Aterian
Allowing for the 90-day total investment horizon Smart Share Global is expected to generate 1.41 times more return on investment than Aterian. However, Smart Share is 1.41 times more volatile than Aterian. It trades about 0.12 of its potential returns per unit of risk. Aterian is currently generating about -0.1 per unit of risk. If you would invest 59.00 in Smart Share Global on December 5, 2024 and sell it today you would earn a total of 54.00 from holding Smart Share Global or generate 91.53% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Smart Share Global vs. Aterian
Performance |
Timeline |
Smart Share Global |
Aterian |
Smart Share and Aterian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Smart Share and Aterian
The main advantage of trading using opposite Smart Share and Aterian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Share position performs unexpectedly, Aterian 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 Aterian will offset losses from the drop in Aterian's long position.Smart Share vs. Frontdoor | Smart Share vs. Bright Horizons Family | Smart Share vs. Mister Car Wash, | Smart Share vs. Carriage Services |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |