Correlation Between Smart Share and Sadot

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

By analyzing existing cross correlation between Smart Share Global and Sadot Group, you can compare the effects of market volatilities on Smart Share and Sadot 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 Smart Share with a short position of Sadot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Share and Sadot.

Diversification Opportunities for Smart Share and Sadot

-0.24

Correlation Coefficient

Smart Share  Sadot

Very good diversification

The 3 months correlation between Smart and Sadot is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Smart Share Global and Sadot Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sadot Group and Smart Share 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 Smart Share Global are associated (or correlated) with Sadot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sadot Group has no effect on the direction of Smart Share i.e., Smart Share and Sadot go up and down completely randomly.

Pair Corralation between Smart Share and Sadot

Allowing for the 90-day total investment horizon Smart Share Global is expected to generate 0.13 times more return on investment than Sadot. However, Smart Share Global is 7.54 times less risky than Sadot. It trades about 0.08 of its potential returns per unit of risk. Sadot Group is currently generating about -0.05 per unit of risk. If you would invest  112.00  in Smart Share Global on May 12, 2025 and sell it today you would earn a total of  6.00  from holding Smart Share Global or generate 5.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Smart Share Global  vs.  Sadot Group

Smart Share Global

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Smart Share Global are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, Smart Share is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Sadot Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Sadot Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Smart Share and Sadot

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

The idea behind Smart Share Global and Sadot Group 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.