Correlation Between Nerdy and A10 Network

Can any of the company-specific risk be diversified away by investing in both Nerdy and A10 Network 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 Nerdy and A10 Network into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nerdy Inc and A10 Network, you can compare the effects of market volatilities on Nerdy and A10 Network 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 Nerdy with a short position of A10 Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nerdy and A10 Network.

Diversification Opportunities for Nerdy and A10 Network

-0.05

Correlation Coefficient

Nerdy  A10 Network

Good diversification

The 3 months correlation between Nerdy and A10 is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Nerdy Inc and A10 Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A10 Network and Nerdy 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 Nerdy Inc are associated (or correlated) with A10 Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A10 Network has no effect on the direction of Nerdy i.e., Nerdy and A10 Network go up and down completely randomly.

Pair Corralation between Nerdy and A10 Network

Given the investment horizon of 90 days Nerdy Inc is expected to under-perform the A10 Network. In addition to that, Nerdy is 2.02 times more volatile than A10 Network. It trades about -0.04 of its total potential returns per unit of risk. A10 Network is currently generating about 0.08 per unit of volatility. If you would invest  1,687  in A10 Network on May 7, 2025 and sell it today you would earn a total of  130.00  from holding A10 Network or generate 7.71% return on investment over 90 days.

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

Nerdy Inc  vs.  A10 Network

Nerdy Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nerdy Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

A10 Network

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in A10 Network are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal technical and fundamental indicators, A10 Network may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Nerdy and A10 Network

The main advantage of trading using opposite Nerdy and A10 Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nerdy position performs unexpectedly, A10 Network 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 A10 Network will offset losses from the drop in A10 Network's long position.

The idea behind Nerdy Inc and A10 Network 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.