Correlation Between Jeffs Brands and Sharps Technology

Can any of the company-specific risk be diversified away by investing in both Jeffs Brands and Sharps Technology 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 Jeffs Brands and Sharps Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jeffs Brands and Sharps Technology Warrant, you can compare the effects of market volatilities on Jeffs Brands and Sharps Technology 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 Jeffs Brands with a short position of Sharps Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jeffs Brands and Sharps Technology.

Diversification Opportunities for Jeffs Brands and Sharps Technology

-0.6

Correlation Coefficient

Jeffs Brands  Sharps Technology

Excellent diversification

The 3 months correlation between Jeffs and Sharps is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Jeffs Brands and Sharps Technology Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharps Technology Warrant and Jeffs Brands 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 Jeffs Brands are associated (or correlated) with Sharps Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharps Technology Warrant has no effect on the direction of Jeffs Brands i.e., Jeffs Brands and Sharps Technology go up and down completely randomly.

Pair Corralation between Jeffs Brands and Sharps Technology

Given the investment horizon of 90 days Jeffs Brands is expected to generate 4.6 times less return on investment than Sharps Technology. But when comparing it to its historical volatility, Jeffs Brands is 2.05 times less risky than Sharps Technology. It trades about 0.06 of its potential returns per unit of risk. Sharps Technology Warrant is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Sharps Technology Warrant on September 15, 2024 and sell it today you would earn a total of  3.72  from holding Sharps Technology Warrant or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	73.39%
Values	Daily Returns

Jeffs Brands  vs.  Sharps Technology Warrant

Jeffs Brands

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Jeffs Brands are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating fundamental drivers, Jeffs Brands reported solid returns over the last few months and may actually be approaching a breakup point.

Sharps Technology Warrant

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sharps Technology Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly uncertain basic indicators, Sharps Technology may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Jeffs Brands and Sharps Technology

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

The idea behind Jeffs Brands and Sharps Technology Warrant 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.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.