Correlation Between SST WT and Grindr Warrant

Can any of the company-specific risk be diversified away by investing in both SST WT and Grindr Warrant 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 SST WT and Grindr Warrant into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for SST WT and Grindr Warrant

0.17

Correlation Coefficient

SST WT  Grindr Warrant

Average diversification

The 3 months correlation between SST and Grindr is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding SST WT and Grindr Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grindr Warrant and SST WT 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 SST WT are associated (or correlated) with Grindr Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grindr Warrant has no effect on the direction of SST WT i.e., SST WT and Grindr Warrant go up and down completely randomly.

Pair Corralation between SST WT and Grindr Warrant

Assuming the 90 days trading horizon SST WT is expected to under-perform the Grindr Warrant. In addition to that, SST WT is 2.73 times more volatile than Grindr Warrant. It trades about -0.3 of its total potential returns per unit of risk. Grindr Warrant is currently generating about 0.21 per unit of volatility. If you would invest  478.00  in Grindr Warrant on September 20, 2024 and sell it today you would earn a total of  98.00  from holding Grindr Warrant or generate 20.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	31.82%
Values	Daily Returns

SST WT  vs.  Grindr Warrant

SST WT

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SST WT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Grindr Warrant

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Grindr Warrant are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Grindr Warrant unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SST WT and Grindr Warrant

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

The idea behind SST WT and Grindr 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.