Correlation Between NETGEAR and SharkNinja,

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

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

Diversification Opportunities for NETGEAR and SharkNinja,

-0.37

Correlation Coefficient

NETGEAR  SharkNinja,

Very good diversification

The 3 months correlation between NETGEAR and SharkNinja, is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and SharkNinja, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SharkNinja, and NETGEAR 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 NETGEAR 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 NETGEAR i.e., NETGEAR and SharkNinja, go up and down completely randomly.

Pair Corralation between NETGEAR and SharkNinja,

Given the investment horizon of 90 days NETGEAR is expected to generate 0.96 times more return on investment than SharkNinja,. However, NETGEAR is 1.04 times less risky than SharkNinja,. It trades about 0.18 of its potential returns per unit of risk. SharkNinja, is currently generating about 0.1 per unit of risk. If you would invest  2,431  in NETGEAR on October 25, 2024 and sell it today you would earn a total of  390.00  from holding NETGEAR or generate 16.04% return on investment over 90 days.

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

NETGEAR  vs.  SharkNinja,

NETGEAR

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in NETGEAR are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent technical and fundamental indicators, NETGEAR reported solid returns over the last few months and may actually be approaching a breakup point.

SharkNinja,

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SharkNinja, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, SharkNinja, is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with NETGEAR and SharkNinja,

The main advantage of trading using opposite NETGEAR and SharkNinja, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR 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 NETGEAR 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 Transaction History module to view history of all your transactions and understand their impact on performance.