Correlation Between Northann Corp and Traeger
Can any of the company-specific risk be diversified away by investing in both Northann Corp and Traeger 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 Northann Corp and Traeger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Northann Corp and Traeger, you can compare the effects of market volatilities on Northann Corp and Traeger 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 Northann Corp with a short position of Traeger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northann Corp and Traeger.
Diversification Opportunities for Northann Corp and Traeger
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Northann and Traeger is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Northann Corp and Traeger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Traeger and Northann Corp 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 Northann Corp are associated (or correlated) with Traeger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Traeger has no effect on the direction of Northann Corp i.e., Northann Corp and Traeger go up and down completely randomly.
Pair Corralation between Northann Corp and Traeger
Considering the 90-day investment horizon Northann Corp is expected to generate 2.3 times more return on investment than Traeger. However, Northann Corp is 2.3 times more volatile than Traeger. It trades about 0.01 of its potential returns per unit of risk. Traeger is currently generating about -0.01 per unit of risk. If you would invest 460.00 in Northann Corp on October 24, 2024 and sell it today you would lose (429.30) from holding Northann Corp or give up 93.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.77% |
| Values | Daily Returns |
Northann Corp vs. Traeger
Performance |
| Timeline |
| Northann Corp |
| Traeger |
Northann Corp and Traeger Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northann Corp and Traeger
The main advantage of trading using opposite Northann Corp and Traeger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northann Corp position performs unexpectedly, Traeger 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 Traeger will offset losses from the drop in Traeger's long position.| Northann Corp vs. Rackspace Technology | Northann Corp vs. Afya | Northann Corp vs. DHI Group | Northann Corp vs. Pearson PLC ADR |
| Traeger vs. Sleep Number Corp | Traeger vs. Tempur Sealy International | Traeger vs. The Lovesac | Traeger vs. MillerKnoll |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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