Correlation Between Sharps Compliance and Republic Services

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

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

Diversification Opportunities for Sharps Compliance and Republic Services

0.0

Correlation Coefficient

Sharps Compliance  Republic Services

Pay attention - limited upside

The 3 months correlation between Sharps and Republic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sharps Compliance Corp and Republic Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Republic Services and Sharps Compliance 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 Compliance Corp are associated (or correlated) with Republic Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Republic Services has no effect on the direction of Sharps Compliance i.e., Sharps Compliance and Republic Services go up and down completely randomly.

Pair Corralation between Sharps Compliance and Republic Services

If you would invest  12,992  in Republic Services on January 24, 2024 and sell it today you would earn a total of  6,069  from holding Republic Services or generate 46.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sharps Compliance Corp  vs.  Republic Services

Sharps Compliance Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sharps Compliance Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Sharps Compliance is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Republic Services

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Republic Services are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Republic Services reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sharps Compliance and Republic Services

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

The idea behind Sharps Compliance Corp and Republic Services 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.