Correlation Between IRobot and Turtle Beach

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both IRobot and Turtle Beach 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 IRobot and Turtle Beach into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IRobot and Turtle Beach Corp, you can compare the effects of market volatilities on IRobot and Turtle Beach 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 IRobot with a short position of Turtle Beach. Check out your portfolio center. Please also check ongoing floating volatility patterns of IRobot and Turtle Beach.

Diversification Opportunities for IRobot and Turtle Beach

-0.49
  Correlation Coefficient

Very good diversification

The 3 months correlation between IRobot and Turtle is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding IRobot and Turtle Beach Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turtle Beach Corp and IRobot 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 IRobot are associated (or correlated) with Turtle Beach. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turtle Beach Corp has no effect on the direction of IRobot i.e., IRobot and Turtle Beach go up and down completely randomly.

Pair Corralation between IRobot and Turtle Beach

Given the investment horizon of 90 days IRobot is expected to under-perform the Turtle Beach. But the stock apears to be less risky and, when comparing its historical volatility, IRobot is 1.56 times less risky than Turtle Beach. The stock trades about -0.25 of its potential returns per unit of risk. The Turtle Beach Corp is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest  1,043  in Turtle Beach Corp on December 30, 2023 and sell it today you would earn a total of  681.00  from holding Turtle Beach Corp or generate 65.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

IRobot  vs.  Turtle Beach Corp

 Performance 
       Timeline  
IRobot 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days IRobot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental drivers remain comparatively stable which may send shares a bit higher in April 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
Turtle Beach Corp 

Risk-Adjusted Performance

15 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Turtle Beach Corp are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Turtle Beach reported solid returns over the last few months and may actually be approaching a breakup point.

IRobot and Turtle Beach Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with IRobot and Turtle Beach

The main advantage of trading using opposite IRobot and Turtle Beach positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IRobot position performs unexpectedly, Turtle Beach 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 Turtle Beach will offset losses from the drop in Turtle Beach's long position.
The idea behind IRobot and Turtle Beach 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.
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.

Other Complementary Tools

Equity Valuation
Check real value of public entities based on technical and fundamental data
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Idea Optimizer
Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency