Correlation Between SharkNinja, and Northann Corp

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

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

Diversification Opportunities for SharkNinja, and Northann Corp

-0.48

Correlation Coefficient

SharkNinja,  Northann Corp

Very good diversification

The 3 months correlation between SharkNinja, and Northann is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding SharkNinja, and Northann Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northann Corp 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 Northann Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northann Corp has no effect on the direction of SharkNinja, i.e., SharkNinja, and Northann Corp go up and down completely randomly.

Pair Corralation between SharkNinja, and Northann Corp

Allowing for the 90-day total investment horizon SharkNinja, is expected to under-perform the Northann Corp. But the stock apears to be less risky and, when comparing its historical volatility, SharkNinja, is 2.86 times less risky than Northann Corp. The stock trades about -0.01 of its potential returns per unit of risk. The Northann Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  25.00  in Northann Corp on September 27, 2024 and sell it today you would earn a total of  0.38  from holding Northann Corp or generate 1.52% return on investment over 90 days.

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

SharkNinja,  vs.  Northann Corp

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 current stock price disarray, may contribute to short-term losses for the investors.

Northann Corp

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Northann Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unfluctuating fundamental indicators, Northann Corp disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SharkNinja, and Northann Corp

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

The idea behind SharkNinja, and Northann Corp 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.