Correlation Between Kewaunee Scientific and SharkNinja,

Can any of the company-specific risk be diversified away by investing in both Kewaunee Scientific 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 Kewaunee Scientific and SharkNinja, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kewaunee Scientific and SharkNinja,, you can compare the effects of market volatilities on Kewaunee Scientific 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 Kewaunee Scientific with a short position of SharkNinja,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kewaunee Scientific and SharkNinja,.

Diversification Opportunities for Kewaunee Scientific and SharkNinja,

0.81

Correlation Coefficient

Kewaunee Scientific  SharkNinja,

Very poor diversification

The 3 months correlation between Kewaunee and SharkNinja, is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kewaunee Scientific and SharkNinja, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SharkNinja, and Kewaunee Scientific 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 Kewaunee Scientific 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 Kewaunee Scientific i.e., Kewaunee Scientific and SharkNinja, go up and down completely randomly.

Pair Corralation between Kewaunee Scientific and SharkNinja,

Given the investment horizon of 90 days Kewaunee Scientific is expected to under-perform the SharkNinja,. In addition to that, Kewaunee Scientific is 1.42 times more volatile than SharkNinja,. It trades about -0.19 of its total potential returns per unit of risk. SharkNinja, is currently generating about -0.06 per unit of volatility. If you would invest  9,573  in SharkNinja, on December 30, 2024 and sell it today you would lose (1,171) from holding SharkNinja, or give up 12.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Kewaunee Scientific  vs.  SharkNinja,

Kewaunee Scientific

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kewaunee Scientific has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

SharkNinja,

Risk-Adjusted Performance

Very Weak

Over the last 90 days SharkNinja, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Kewaunee Scientific and SharkNinja,

The main advantage of trading using opposite Kewaunee Scientific and SharkNinja, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kewaunee Scientific 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 Kewaunee Scientific 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.

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.