Correlation Between Shenzhen Fluence and NetApp
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By analyzing existing cross correlation between Shenzhen Fluence Technology and NetApp Inc, you can compare the effects of market volatilities on Shenzhen Fluence and NetApp 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 Shenzhen Fluence with a short position of NetApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fluence and NetApp.
Diversification Opportunities for Shenzhen Fluence and NetApp
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and NetApp is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fluence Technology and NetApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetApp Inc and Shenzhen Fluence 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 Shenzhen Fluence Technology are associated (or correlated) with NetApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetApp Inc has no effect on the direction of Shenzhen Fluence i.e., Shenzhen Fluence and NetApp go up and down completely randomly.
Pair Corralation between Shenzhen Fluence and NetApp
Assuming the 90 days trading horizon Shenzhen Fluence is expected to generate 2.23 times less return on investment than NetApp. In addition to that, Shenzhen Fluence is 1.12 times more volatile than NetApp Inc. It trades about 0.05 of its total potential returns per unit of risk. NetApp Inc is currently generating about 0.13 per unit of volatility. If you would invest 10,371 in NetApp Inc on July 16, 2025 and sell it today you would earn a total of 1,515 from holding NetApp Inc or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.06% |
| Values | Daily Returns |
Shenzhen Fluence Technology vs. NetApp Inc
Performance |
| Timeline |
| Shenzhen Fluence Tec |
Risk-Adjusted Performance
Soft
Weak | Strong |
| NetApp Inc |
Shenzhen Fluence and NetApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fluence and NetApp
The main advantage of trading using opposite Shenzhen Fluence and NetApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fluence position performs unexpectedly, NetApp 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 NetApp will offset losses from the drop in NetApp's long position.The idea behind Shenzhen Fluence Technology and NetApp 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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