Correlation Between Aterian and SharkNinja,
Can any of the company-specific risk be diversified away by investing in both Aterian 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 Aterian and SharkNinja, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aterian and SharkNinja,, you can compare the effects of market volatilities on Aterian 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 Aterian with a short position of SharkNinja,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aterian and SharkNinja,.
Diversification Opportunities for Aterian and SharkNinja,
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aterian and SharkNinja, is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Aterian and SharkNinja, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SharkNinja, and Aterian 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 Aterian 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 Aterian i.e., Aterian and SharkNinja, go up and down completely randomly.
Pair Corralation between Aterian and SharkNinja,
Given the investment horizon of 90 days Aterian is expected to generate 1.81 times less return on investment than SharkNinja,. In addition to that, Aterian is 1.66 times more volatile than SharkNinja,. It trades about 0.04 of its total potential returns per unit of risk. SharkNinja, is currently generating about 0.12 per unit of volatility. If you would invest 6,598 in SharkNinja, on September 3, 2024 and sell it today you would earn a total of 3,457 from holding SharkNinja, or generate 52.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aterian vs. SharkNinja,
Performance |
| Timeline |
| Aterian |
| SharkNinja, |
Aterian and SharkNinja, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aterian and SharkNinja,
The main advantage of trading using opposite Aterian and SharkNinja, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aterian 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.The idea behind Aterian and SharkNinja, 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.| SharkNinja, vs. Aehr Test Systems | SharkNinja, vs. Biglari Holdings | SharkNinja, vs. Dennys Corp | SharkNinja, vs. Vishay Intertechnology |
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 Stocks Directory module to find actively traded stocks across global markets.
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