Correlation Between Sharps Technology and Yubo International

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Can any of the company-specific risk be diversified away by investing in both Sharps Technology and Yubo International 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 Sharps Technology and Yubo International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sharps Technology and Yubo International Biotech, you can compare the effects of market volatilities on Sharps Technology and Yubo International 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 Sharps Technology with a short position of Yubo International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharps Technology and Yubo International.

Diversification Opportunities for Sharps Technology and Yubo International

0.62
  Correlation Coefficient

Poor diversification

The 3 months correlation between Sharps and Yubo is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Technology and Yubo International Biotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yubo International and Sharps Technology 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 Sharps Technology are associated (or correlated) with Yubo International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yubo International has no effect on the direction of Sharps Technology i.e., Sharps Technology and Yubo International go up and down completely randomly.

Pair Corralation between Sharps Technology and Yubo International

Given the investment horizon of 90 days Sharps Technology is expected to under-perform the Yubo International. But the stock apears to be less risky and, when comparing its historical volatility, Sharps Technology is 2.65 times less risky than Yubo International. The stock trades about -0.06 of its potential returns per unit of risk. The Yubo International Biotech is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4.50  in Yubo International Biotech on October 25, 2024 and sell it today you would lose (1.30) from holding Yubo International Biotech or give up 28.89% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy98.36%
ValuesDaily Returns

Sharps Technology  vs.  Yubo International Biotech

 Performance 
       Timeline  
Sharps Technology 

Risk-Adjusted Performance

0 of 100

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

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Yubo International Biotech are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Yubo International revealed solid returns over the last few months and may actually be approaching a breakup point.

Sharps Technology and Yubo International Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sharps Technology and Yubo International

The main advantage of trading using opposite Sharps Technology and Yubo International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sharps Technology position performs unexpectedly, Yubo International 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 Yubo International will offset losses from the drop in Yubo International's long position.
The idea behind Sharps Technology and Yubo International Biotech 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 Stocks Directory module to find actively traded stocks across global markets.

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