Correlation Between SharkNinja, and Patrick Industries

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

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

Diversification Opportunities for SharkNinja, and Patrick Industries

0.76

Correlation Coefficient

SharkNinja,  Patrick Industries

Poor diversification

The 3 months correlation between SharkNinja, and Patrick is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SharkNinja, and Patrick Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Patrick Industries 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 Patrick Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Patrick Industries has no effect on the direction of SharkNinja, i.e., SharkNinja, and Patrick Industries go up and down completely randomly.

Pair Corralation between SharkNinja, and Patrick Industries

Allowing for the 90-day total investment horizon SharkNinja, is expected to under-perform the Patrick Industries. In addition to that, SharkNinja, is 1.52 times more volatile than Patrick Industries. It trades about -0.06 of its total potential returns per unit of risk. Patrick Industries is currently generating about 0.03 per unit of volatility. If you would invest  8,236  in Patrick Industries on December 30, 2024 and sell it today you would earn a total of  154.00  from holding Patrick Industries or generate 1.87% return on investment over 90 days.

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

SharkNinja,  vs.  Patrick Industries

SharkNinja,

Risk-Adjusted Performance

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 weak 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.

Patrick Industries

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Patrick Industries are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Patrick Industries is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with SharkNinja, and Patrick Industries

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

The idea behind SharkNinja, and Patrick Industries 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.