Correlation Between Conifer Holdings, and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Conifer Holdings, and NETGEAR 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 Conifer Holdings, and NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Conifer Holdings, 975 and NETGEAR, you can compare the effects of market volatilities on Conifer Holdings, and NETGEAR 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 Conifer Holdings, with a short position of NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Conifer Holdings, and NETGEAR.
Diversification Opportunities for Conifer Holdings, and NETGEAR
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Conifer and NETGEAR is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Conifer Holdings, 975 and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and Conifer Holdings, 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 Conifer Holdings, 975 are associated (or correlated) with NETGEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETGEAR has no effect on the direction of Conifer Holdings, i.e., Conifer Holdings, and NETGEAR go up and down completely randomly.
Pair Corralation between Conifer Holdings, and NETGEAR
Assuming the 90 days horizon Conifer Holdings, 975 is expected to generate 1.55 times more return on investment than NETGEAR. However, Conifer Holdings, is 1.55 times more volatile than NETGEAR. It trades about 0.05 of its potential returns per unit of risk. NETGEAR is currently generating about 0.04 per unit of risk. If you would invest 2,095 in Conifer Holdings, 975 on November 3, 2024 and sell it today you would earn a total of 38.34 from holding Conifer Holdings, 975 or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 85.0% |
| Values | Daily Returns |
Conifer Holdings, 975 vs. NETGEAR
Performance |
| Timeline |
| Conifer Holdings, 975 |
| NETGEAR |
Conifer Holdings, and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Conifer Holdings, and NETGEAR
The main advantage of trading using opposite Conifer Holdings, and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Conifer Holdings, position performs unexpectedly, NETGEAR 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 NETGEAR will offset losses from the drop in NETGEAR's long position.| Conifer Holdings, vs. Albemarle | Conifer Holdings, vs. Afya | Conifer Holdings, vs. The Mosaic | Conifer Holdings, vs. Luxfer Holdings PLC |
| NETGEAR vs. KVH Industries | NETGEAR vs. Ituran Location and | NETGEAR vs. Aviat Networks | NETGEAR vs. Mynaric AG ADR |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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