Correlation Between NETGEAR and Bill
Can any of the company-specific risk be diversified away by investing in both NETGEAR and Bill 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 Bill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Bill Com Holdings, you can compare the effects of market volatilities on NETGEAR and Bill 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 Bill. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Bill.
Diversification Opportunities for NETGEAR and Bill
Poor diversification
The 3 months correlation between NETGEAR and Bill is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Bill Com Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bill Com Holdings 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 Bill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bill Com Holdings has no effect on the direction of NETGEAR i.e., NETGEAR and Bill go up and down completely randomly.
Pair Corralation between NETGEAR and Bill
Given the investment horizon of 90 days NETGEAR is expected to generate 2.9 times less return on investment than Bill. But when comparing it to its historical volatility, NETGEAR is 2.13 times less risky than Bill. It trades about 0.34 of its potential returns per unit of risk. Bill Com Holdings is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 5,670 in Bill Com Holdings on August 30, 2024 and sell it today you would earn a total of 3,307 from holding Bill Com Holdings or generate 58.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NETGEAR vs. Bill Com Holdings
Performance |
| Timeline |
| NETGEAR |
| Bill Com Holdings |
NETGEAR and Bill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Bill
The main advantage of trading using opposite NETGEAR and Bill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, Bill 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 Bill will offset losses from the drop in Bill's long position.| NETGEAR vs. KVH Industries | NETGEAR vs. Merck Company | NETGEAR vs. Pharvaris BV | NETGEAR vs. Brinker International |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |