Correlation Between Sharps Technology and Yubo International
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.36% |
Values | Daily Returns |
Sharps Technology vs. Yubo International Biotech
Performance |
Timeline |
Sharps Technology |
Yubo International |
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.Sharps Technology vs. JIN MEDICAL INTERNATIONAL | Sharps Technology vs. Meihua International Medical | Sharps Technology vs. GlucoTrack | Sharps Technology vs. Innovative Eyewear |
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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 Stocks Directory module to find actively traded stocks across global markets.
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