Correlation Between Avita Medical and Sharps Technology
Can any of the company-specific risk be diversified away by investing in both Avita Medical and Sharps Technology 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 Avita Medical and Sharps Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avita Medical and Sharps Technology, you can compare the effects of market volatilities on Avita Medical and Sharps Technology 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 Avita Medical with a short position of Sharps Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avita Medical and Sharps Technology.
Diversification Opportunities for Avita Medical and Sharps Technology
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Avita and Sharps is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Avita Medical and Sharps Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharps Technology and Avita Medical 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 Avita Medical are associated (or correlated) with Sharps Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharps Technology has no effect on the direction of Avita Medical i.e., Avita Medical and Sharps Technology go up and down completely randomly.
Pair Corralation between Avita Medical and Sharps Technology
Given the investment horizon of 90 days Avita Medical is expected to generate 0.86 times more return on investment than Sharps Technology. However, Avita Medical is 1.17 times less risky than Sharps Technology. It trades about -0.01 of its potential returns per unit of risk. Sharps Technology is currently generating about -0.18 per unit of risk. If you would invest 465.00 in Avita Medical on August 25, 2025 and sell it today you would lose (86.00) from holding Avita Medical or give up 18.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Avita Medical vs. Sharps Technology
Performance |
| Timeline |
| Avita Medical |
| Sharps Technology |
Avita Medical and Sharps Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avita Medical and Sharps Technology
The main advantage of trading using opposite Avita Medical and Sharps Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avita Medical position performs unexpectedly, Sharps Technology 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 Sharps Technology will offset losses from the drop in Sharps Technology's long position.| Avita Medical vs. InspireMD | Avita Medical vs. Hyperfine | Avita Medical vs. Vivani Medical | Avita Medical vs. Quipt Home Medical |
| Sharps Technology vs. Pro Dex | Sharps Technology vs. Lucid Diagnostics | Sharps Technology vs. Microbot Medical | Sharps Technology vs. Sera Prognostics |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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