Correlation Between SharkNinja, and MasterBrand
Can any of the company-specific risk be diversified away by investing in both SharkNinja, and MasterBrand 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 SharkNinja, and MasterBrand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SharkNinja, and MasterBrand, you can compare the effects of market volatilities on SharkNinja, and MasterBrand 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 SharkNinja, with a short position of MasterBrand. Check out your portfolio center. Please also check ongoing floating volatility patterns of SharkNinja, and MasterBrand.
Diversification Opportunities for SharkNinja, and MasterBrand
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SharkNinja, and MasterBrand is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding SharkNinja, and MasterBrand in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MasterBrand and SharkNinja, 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 SharkNinja, are associated (or correlated) with MasterBrand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MasterBrand has no effect on the direction of SharkNinja, i.e., SharkNinja, and MasterBrand go up and down completely randomly.
Pair Corralation between SharkNinja, and MasterBrand
Allowing for the 90-day total investment horizon SharkNinja, is expected to generate 1.34 times more return on investment than MasterBrand. However, SharkNinja, is 1.34 times more volatile than MasterBrand. It trades about 0.1 of its potential returns per unit of risk. MasterBrand is currently generating about 0.07 per unit of risk. If you would invest 4,133 in SharkNinja, on August 27, 2024 and sell it today you would earn a total of 5,701 from holding SharkNinja, or generate 137.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 89.81% |
| Values | Daily Returns |
SharkNinja, vs. MasterBrand
Performance |
| Timeline |
| SharkNinja, |
| MasterBrand |
SharkNinja, and MasterBrand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SharkNinja, and MasterBrand
The main advantage of trading using opposite SharkNinja, and MasterBrand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SharkNinja, position performs unexpectedly, MasterBrand 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 MasterBrand will offset losses from the drop in MasterBrand's long position.| SharkNinja, vs. LB Foster | SharkNinja, vs. 51Talk Online Education | SharkNinja, vs. Old Dominion Freight | SharkNinja, vs. Ambev SA ADR |
| MasterBrand vs. Bassett Furniture Industries | MasterBrand vs. Ethan Allen Interiors | MasterBrand vs. Natuzzi SpA | MasterBrand vs. Flexsteel Industries |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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