Correlation Between Quanex Building and SharkNinja,

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

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

Diversification Opportunities for Quanex Building and SharkNinja,

0.24

Correlation Coefficient

Quanex Building  SharkNinja,

Modest diversification

The 3 months correlation between Quanex and SharkNinja, is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Quanex Building Products and SharkNinja, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SharkNinja, and Quanex Building 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 Quanex Building Products 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 Quanex Building i.e., Quanex Building and SharkNinja, go up and down completely randomly.

Pair Corralation between Quanex Building and SharkNinja,

Allowing for the 90-day total investment horizon Quanex Building Products is expected to under-perform the SharkNinja,. In addition to that, Quanex Building is 1.79 times more volatile than SharkNinja,. It trades about -0.31 of its total potential returns per unit of risk. SharkNinja, is currently generating about -0.08 per unit of volatility. If you would invest  10,167  in SharkNinja, on October 6, 2024 and sell it today you would lose (311.00) from holding SharkNinja, or give up 3.06% of portfolio value over 90 days.

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

Quanex Building Products  vs.  SharkNinja,

Quanex Building Products

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quanex Building Products has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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 very healthy basic indicators, SharkNinja, is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Quanex Building and SharkNinja,

The main advantage of trading using opposite Quanex Building and SharkNinja, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quanex Building 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 Quanex Building Products 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.