Correlation Between Indie Semiconductor and Sharecare

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

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

Diversification Opportunities for Indie Semiconductor and Sharecare

0.3

Correlation Coefficient

Indie Semiconductor  Sharecare

Weak diversification

The 3 months correlation between Indie and Sharecare is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Indie Semiconductor Warrant and Sharecare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharecare and Indie Semiconductor 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 Indie Semiconductor Warrant are associated (or correlated) with Sharecare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharecare has no effect on the direction of Indie Semiconductor i.e., Indie Semiconductor and Sharecare go up and down completely randomly.

Pair Corralation between Indie Semiconductor and Sharecare

If you would invest  139.00  in Sharecare on September 3, 2024 and sell it today you would earn a total of  4.00  from holding Sharecare or generate 2.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	2.78%
Values	Daily Returns

Indie Semiconductor Warrant  vs.  Sharecare

Indie Semiconductor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Indie Semiconductor Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, Indie Semiconductor is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Sharecare

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Sharecare has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, Sharecare is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Indie Semiconductor and Sharecare

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

The idea behind Indie Semiconductor Warrant and Sharecare 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 Transaction History module to view history of all your transactions and understand their impact on performance.