Correlation Between NETGEAR and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both NETGEAR and Aegean Airlines 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 NETGEAR and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Aegean Airlines SA, you can compare the effects of market volatilities on NETGEAR and Aegean Airlines 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 NETGEAR with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Aegean Airlines.
Diversification Opportunities for NETGEAR and Aegean Airlines
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NETGEAR and Aegean is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and NETGEAR 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 NETGEAR are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of NETGEAR i.e., NETGEAR and Aegean Airlines go up and down completely randomly.
Pair Corralation between NETGEAR and Aegean Airlines
Given the investment horizon of 90 days NETGEAR is expected to generate 0.97 times more return on investment than Aegean Airlines. However, NETGEAR is 1.03 times less risky than Aegean Airlines. It trades about 0.33 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.21 per unit of risk. If you would invest 2,044 in NETGEAR on August 30, 2024 and sell it today you would earn a total of 360.00 from holding NETGEAR or generate 17.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
NETGEAR vs. Aegean Airlines SA
Performance |
| Timeline |
| NETGEAR |
| Aegean Airlines SA |
NETGEAR and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Aegean Airlines
The main advantage of trading using opposite NETGEAR and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| NETGEAR vs. Knowles Cor | NETGEAR vs. AudioCodes | NETGEAR vs. Ituran Location and | NETGEAR vs. Aviat Networks |
| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |