At first I didn't answer if it was waterproof. WHY? I've never used heat shrink tubing just to lay it out exposed. If you're worried about how wet it will get before it starts to corrode under that shrink wrap and it will if you don't add extra protection like (tape over the entire area covering both ends of the shrink wrap the adhesive on the tape also wraps around the wire. Then and only then do you have a watertight seal. To cover a joint it's useless, if it's even a size bigger then you really need extra electrical tape. It's your choice.
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