Correlation Between SmartKem, Common and Atomera
Can any of the company-specific risk be diversified away by investing in both SmartKem, Common and Atomera 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 SmartKem, Common and Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SmartKem, Common Stock and Atomera, you can compare the effects of market volatilities on SmartKem, Common and Atomera 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 SmartKem, Common with a short position of Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of SmartKem, Common and Atomera.
Diversification Opportunities for SmartKem, Common and Atomera
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SmartKem, and Atomera is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SmartKem, Common Stock and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera and SmartKem, Common 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 SmartKem, Common Stock are associated (or correlated) with Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of SmartKem, Common i.e., SmartKem, Common and Atomera go up and down completely randomly.
Pair Corralation between SmartKem, Common and Atomera
Given the investment horizon of 90 days SmartKem, Common Stock is expected to generate 4.13 times more return on investment than Atomera. However, SmartKem, Common is 4.13 times more volatile than Atomera. It trades about 0.04 of its potential returns per unit of risk. Atomera is currently generating about -0.01 per unit of risk. If you would invest 2,275 in SmartKem, Common Stock on July 13, 2024 and sell it today you would lose (1,950) from holding SmartKem, Common Stock or give up 85.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 71.92% |
Values | Daily Returns |
SmartKem, Common Stock vs. Atomera
Performance |
Timeline |
SmartKem, Common Stock |
Atomera |
SmartKem, Common and Atomera Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SmartKem, Common and Atomera
The main advantage of trading using opposite SmartKem, Common and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SmartKem, Common position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.SmartKem, Common vs. Atomera | SmartKem, Common vs. Aehr Test Systems | SmartKem, Common vs. indie Semiconductor | SmartKem, Common vs. KLA Tencor |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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