Correlation Between Whirlpool and SharkNinja,

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

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

Diversification Opportunities for Whirlpool and SharkNinja,

-0.46

Correlation Coefficient

Whirlpool  SharkNinja,

Very good diversification

The 3 months correlation between Whirlpool and SharkNinja, is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool and SharkNinja, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SharkNinja, and Whirlpool 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 Whirlpool 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 Whirlpool i.e., Whirlpool and SharkNinja, go up and down completely randomly.

Pair Corralation between Whirlpool and SharkNinja,

Considering the 90-day investment horizon Whirlpool is expected to generate 1.67 times less return on investment than SharkNinja,. But when comparing it to its historical volatility, Whirlpool is 1.24 times less risky than SharkNinja,. It trades about 0.06 of its potential returns per unit of risk. SharkNinja, is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  7,522  in SharkNinja, on September 30, 2024 and sell it today you would earn a total of  2,203  from holding SharkNinja, or generate 29.29% return on investment over 90 days.

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

Whirlpool  vs.  SharkNinja,

Whirlpool

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Whirlpool are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical indicators, Whirlpool may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 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.

Pair Trading with Whirlpool and SharkNinja,

The main advantage of trading using opposite Whirlpool and SharkNinja, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whirlpool 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 Whirlpool 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.