Correlation Between Shotspotter and Cleartronic

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

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

Diversification Opportunities for Shotspotter and Cleartronic

-0.03

Correlation Coefficient

Shotspotter  Cleartronic

Good diversification

The 3 months correlation between Shotspotter and Cleartronic is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Shotspotter and Cleartronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleartronic and Shotspotter 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 Shotspotter are associated (or correlated) with Cleartronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleartronic has no effect on the direction of Shotspotter i.e., Shotspotter and Cleartronic go up and down completely randomly.

Pair Corralation between Shotspotter and Cleartronic

Given the investment horizon of 90 days Shotspotter is expected to generate 0.66 times more return on investment than Cleartronic. However, Shotspotter is 1.52 times less risky than Cleartronic. It trades about 0.16 of its potential returns per unit of risk. Cleartronic is currently generating about 0.03 per unit of risk. If you would invest  1,252  in Shotspotter on December 24, 2024 and sell it today you would earn a total of  559.00  from holding Shotspotter or generate 44.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.31%
Values	Daily Returns

Shotspotter  vs.  Cleartronic

Shotspotter

Risk-Adjusted Performance

Good

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

Cleartronic

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cleartronic are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Cleartronic may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Shotspotter and Cleartronic

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

The idea behind Shotspotter and Cleartronic 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.