Correlation Between Aehr Test and SharkNinja,
Can any of the company-specific risk be diversified away by investing in both Aehr Test and SharkNinja, 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 Aehr Test and SharkNinja, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aehr Test Systems and SharkNinja,, you can compare the effects of market volatilities on Aehr Test and SharkNinja, 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 Aehr Test with a short position of SharkNinja,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aehr Test and SharkNinja,.
Diversification Opportunities for Aehr Test and SharkNinja,
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aehr and SharkNinja, is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aehr Test Systems and SharkNinja, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SharkNinja, and Aehr Test 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 Aehr Test Systems are associated (or correlated) with SharkNinja,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SharkNinja, has no effect on the direction of Aehr Test i.e., Aehr Test and SharkNinja, go up and down completely randomly.
Pair Corralation between Aehr Test and SharkNinja,
Given the investment horizon of 90 days Aehr Test Systems is expected to under-perform the SharkNinja,. In addition to that, Aehr Test is 1.68 times more volatile than SharkNinja,. It trades about -0.04 of its total potential returns per unit of risk. SharkNinja, is currently generating about 0.1 per unit of volatility. If you would invest 4,133 in SharkNinja, on September 4, 2024 and sell it today you would earn a total of 5,700 from holding SharkNinja, or generate 137.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 91.15% |
| Values | Daily Returns |
Aehr Test Systems vs. SharkNinja,
Performance |
| Timeline |
| Aehr Test Systems |
| SharkNinja, |
Aehr Test and SharkNinja, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aehr Test and SharkNinja,
The main advantage of trading using opposite Aehr Test and SharkNinja, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aehr Test position performs unexpectedly, SharkNinja, 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 SharkNinja, will offset losses from the drop in SharkNinja,'s long position.| Aehr Test vs. Photronics | Aehr Test vs. Lam Research Corp | Aehr Test vs. KLA Tencor | Aehr Test vs. Kulicke and Soffa |
| SharkNinja, vs. Analog Devices | SharkNinja, vs. Taiwan Semiconductor Manufacturing | SharkNinja, vs. GameStop Corp | SharkNinja, vs. Entegris |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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