Correlation Between MasterBrand and SharkNinja,

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

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

Diversification Opportunities for MasterBrand and SharkNinja,

0.57

Correlation Coefficient

MasterBrand  SharkNinja,

Very weak diversification

The 3 months correlation between MasterBrand and SharkNinja, is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding MasterBrand and SharkNinja, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SharkNinja, and MasterBrand 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 MasterBrand 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 MasterBrand i.e., MasterBrand and SharkNinja, go up and down completely randomly.

Pair Corralation between MasterBrand and SharkNinja,

Considering the 90-day investment horizon MasterBrand is expected to generate 1.99 times less return on investment than SharkNinja,. But when comparing it to its historical volatility, MasterBrand is 1.27 times less risky than SharkNinja,. It trades about 0.06 of its potential returns per unit of risk. SharkNinja, is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  4,133  in SharkNinja, on October 4, 2024 and sell it today you would earn a total of  5,603  from holding SharkNinja, or generate 135.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	72.73%
Values	Daily Returns

MasterBrand  vs.  SharkNinja,

MasterBrand

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MasterBrand 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 fundamental drivers remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

SharkNinja,

Risk-Adjusted Performance

0 of 100

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 unfluctuating 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 MasterBrand and SharkNinja,

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

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.