Correlation Between Sharp Corp and One Stop

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

By analyzing existing cross correlation between Sharp Corp ADR and One Stop Systems, you can compare the effects of market volatilities on Sharp Corp and One Stop 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 Sharp Corp with a short position of One Stop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sharp Corp and One Stop.

Diversification Opportunities for Sharp Corp and One Stop

-0.85

Correlation Coefficient

Sharp Corp  One Stop

Pay attention - limited upside

The 3 months correlation between Sharp and One is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Sharp Corp ADR and One Stop Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Stop Systems and Sharp Corp 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 Sharp Corp ADR are associated (or correlated) with One Stop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Stop Systems has no effect on the direction of Sharp Corp i.e., Sharp Corp and One Stop go up and down completely randomly.

Pair Corralation between Sharp Corp and One Stop

Assuming the 90 days horizon Sharp Corp ADR is expected to under-perform the One Stop. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sharp Corp ADR is 2.57 times less risky than One Stop. The pink sheet trades about -0.14 of its potential returns per unit of risk. The One Stop Systems is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  241.00  in One Stop Systems on May 1, 2025 and sell it today you would earn a total of  290.00  from holding One Stop Systems or generate 120.33% return on investment over 90 days.

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

Sharp Corp ADR  vs.  One Stop Systems

Sharp Corp ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sharp Corp ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

One Stop Systems

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in One Stop Systems are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, One Stop unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sharp Corp and One Stop

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

The idea behind Sharp Corp ADR and One Stop Systems 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.