Correlation Between Shotspotter and TROOPS
Can any of the company-specific risk be diversified away by investing in both Shotspotter and TROOPS 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 Shotspotter and TROOPS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shotspotter and TROOPS Inc, you can compare the effects of market volatilities on Shotspotter and TROOPS 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 Shotspotter with a short position of TROOPS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shotspotter and TROOPS.
Diversification Opportunities for Shotspotter and TROOPS
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shotspotter and TROOPS is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Shotspotter and TROOPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TROOPS Inc and Shotspotter 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 Shotspotter are associated (or correlated) with TROOPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TROOPS Inc has no effect on the direction of Shotspotter i.e., Shotspotter and TROOPS go up and down completely randomly.
Pair Corralation between Shotspotter and TROOPS
Given the investment horizon of 90 days Shotspotter is expected to under-perform the TROOPS. But the stock apears to be less risky and, when comparing its historical volatility, Shotspotter is 1.43 times less risky than TROOPS. The stock trades about -0.29 of its potential returns per unit of risk. The TROOPS Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 116.00 in TROOPS Inc on August 25, 2025 and sell it today you would earn a total of 9.00 from holding TROOPS Inc or generate 7.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shotspotter vs. TROOPS Inc
Performance |
| Timeline |
| Shotspotter |
| TROOPS Inc |
Shotspotter and TROOPS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shotspotter and TROOPS
The main advantage of trading using opposite Shotspotter and TROOPS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shotspotter position performs unexpectedly, TROOPS 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 TROOPS will offset losses from the drop in TROOPS's long position.| Shotspotter vs. Nerdy Inc | Shotspotter vs. Roadzen | Shotspotter vs. TROOPS Inc | Shotspotter vs. WM Technology |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |