Correlation Between SharkNinja, and Etsy

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

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

Diversification Opportunities for SharkNinja, and Etsy

-0.32

Correlation Coefficient

SharkNinja,  Etsy

Very good diversification

The 3 months correlation between SharkNinja, and Etsy is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding SharkNinja, and Etsy Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etsy Inc 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 Etsy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etsy Inc has no effect on the direction of SharkNinja, i.e., SharkNinja, and Etsy go up and down completely randomly.

Pair Corralation between SharkNinja, and Etsy

Allowing for the 90-day total investment horizon SharkNinja, is expected to generate 1.23 times more return on investment than Etsy. However, SharkNinja, is 1.23 times more volatile than Etsy Inc. It trades about 0.04 of its potential returns per unit of risk. Etsy Inc is currently generating about 0.01 per unit of risk. If you would invest  9,517  in SharkNinja, on September 1, 2024 and sell it today you would earn a total of  538.00  from holding SharkNinja, or generate 5.65% return on investment over 90 days.

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

SharkNinja,  vs.  Etsy Inc

SharkNinja,

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in SharkNinja, are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, SharkNinja, may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Etsy Inc

Risk-Adjusted Performance

1 of 100

Weak

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

Pair Trading with SharkNinja, and Etsy

The main advantage of trading using opposite SharkNinja, and Etsy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SharkNinja, position performs unexpectedly, Etsy 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 Etsy will offset losses from the drop in Etsy's long position.

The idea behind SharkNinja, and Etsy Inc 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.