Correlation Between Bassett Furniture and SharkNinja,
Can any of the company-specific risk be diversified away by investing in both Bassett Furniture 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 Bassett Furniture and SharkNinja, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bassett Furniture Industries and SharkNinja,, you can compare the effects of market volatilities on Bassett Furniture 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 Bassett Furniture with a short position of SharkNinja,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bassett Furniture and SharkNinja,.
Diversification Opportunities for Bassett Furniture and SharkNinja,
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bassett and SharkNinja, is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bassett Furniture Industries and SharkNinja, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SharkNinja, and Bassett Furniture 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 Bassett Furniture Industries 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 Bassett Furniture i.e., Bassett Furniture and SharkNinja, go up and down completely randomly.
Pair Corralation between Bassett Furniture and SharkNinja,
Given the investment horizon of 90 days Bassett Furniture is expected to generate 33.11 times less return on investment than SharkNinja,. But when comparing it to its historical volatility, Bassett Furniture Industries is 1.31 times less risky than SharkNinja,. It trades about 0.01 of its potential returns per unit of risk. SharkNinja, is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,012 in SharkNinja, on September 12, 2024 and sell it today you would earn a total of 5,200 from holding SharkNinja, or generate 103.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bassett Furniture Industries vs. SharkNinja,
Performance |
| Timeline |
| Bassett Furniture |
| SharkNinja, |
Bassett Furniture and SharkNinja, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bassett Furniture and SharkNinja,
The main advantage of trading using opposite Bassett Furniture and SharkNinja, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bassett Furniture 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.| Bassett Furniture vs. Hooker Furniture | Bassett Furniture vs. Flexsteel Industries | Bassett Furniture vs. Haverty Furniture Companies | Bassett Furniture vs. La Z Boy Incorporated |
| SharkNinja, vs. Cincinnati Financial | SharkNinja, vs. Kinsale Capital Group | SharkNinja, vs. Eltek | SharkNinja, vs. Employers Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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