Correlation Between Nebius Group and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Nebius Group 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 Nebius Group and NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nebius Group NV and NETGEAR, you can compare the effects of market volatilities on Nebius Group 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 Nebius Group with a short position of NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nebius Group and NETGEAR.
Diversification Opportunities for Nebius Group and NETGEAR
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nebius and NETGEAR is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Nebius Group NV and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and Nebius Group 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 Nebius Group NV 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 Nebius Group i.e., Nebius Group and NETGEAR go up and down completely randomly.
Pair Corralation between Nebius Group and NETGEAR
Given the investment horizon of 90 days Nebius Group NV is expected to generate 3.65 times more return on investment than NETGEAR. However, Nebius Group is 3.65 times more volatile than NETGEAR. It trades about 0.32 of its potential returns per unit of risk. NETGEAR is currently generating about 0.24 per unit of risk. If you would invest 2,075 in Nebius Group NV on September 5, 2024 and sell it today you would earn a total of 1,156 from holding Nebius Group NV or generate 55.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nebius Group NV vs. NETGEAR
Performance |
| Timeline |
| Nebius Group NV |
| NETGEAR |
Nebius Group and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nebius Group and NETGEAR
The main advantage of trading using opposite Nebius Group and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nebius Group 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.| Nebius Group vs. NETGEAR | Nebius Group vs. National Beverage Corp | Nebius Group vs. Paiute Oil Mining | Nebius Group vs. Valneva SE ADR |
| NETGEAR vs. Cambium Networks Corp | NETGEAR vs. Knowles Cor | NETGEAR vs. Ituran Location and | NETGEAR vs. ADTRAN Inc |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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