Correlation Between SHP ETF and Insulet

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

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

Diversification Opportunities for SHP ETF and Insulet

-0.51

Correlation Coefficient

SHP ETF  Insulet

Excellent diversification

The 3 months correlation between SHP and Insulet is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SHP ETF Trust and Insulet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insulet and SHP ETF 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 SHP ETF Trust are associated (or correlated) with Insulet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insulet has no effect on the direction of SHP ETF i.e., SHP ETF and Insulet go up and down completely randomly.

Pair Corralation between SHP ETF and Insulet

Given the investment horizon of 90 days SHP ETF Trust is expected to generate 0.27 times more return on investment than Insulet. However, SHP ETF Trust is 3.67 times less risky than Insulet. It trades about 0.11 of its potential returns per unit of risk. Insulet is currently generating about -0.08 per unit of risk. If you would invest  5,065  in SHP ETF Trust on September 11, 2025 and sell it today you would earn a total of  209.00  from holding SHP ETF Trust or generate 4.13% return on investment over 90 days.

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

SHP ETF Trust  vs.  Insulet

SHP ETF Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in SHP ETF Trust are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, SHP ETF is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Insulet

Risk-Adjusted Performance

Weakest

Over the last 90 days Insulet has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with SHP ETF and Insulet

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

The idea behind SHP ETF Trust and Insulet 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.