Correlation Between NETGEAR and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both NETGEAR and Canlan Ice 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 Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Canlan Ice Sports, you can compare the effects of market volatilities on NETGEAR and Canlan Ice 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 Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Canlan Ice.
Diversification Opportunities for NETGEAR and Canlan Ice
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NETGEAR and Canlan is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports 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 Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of NETGEAR i.e., NETGEAR and Canlan Ice go up and down completely randomly.
Pair Corralation between NETGEAR and Canlan Ice
Given the investment horizon of 90 days NETGEAR is expected to generate 29.73 times more return on investment than Canlan Ice. However, NETGEAR is 29.73 times more volatile than Canlan Ice Sports. It trades about 0.17 of its potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.15 per unit of risk. If you would invest 1,436 in NETGEAR on September 19, 2024 and sell it today you would earn a total of 1,442 from holding NETGEAR or generate 100.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
NETGEAR vs. Canlan Ice Sports
Performance |
| Timeline |
| NETGEAR |
| Canlan Ice Sports |
NETGEAR and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Canlan Ice
The main advantage of trading using opposite NETGEAR and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| NETGEAR vs. Passage Bio | NETGEAR vs. Black Diamond Therapeutics | NETGEAR vs. Alector | NETGEAR vs. Century Therapeutics |
| Canlan Ice vs. Oriental Land Co | Canlan Ice vs. ANTA Sports Products | Canlan Ice vs. Carnival Plc ADS | Canlan Ice vs. Li Ning Company |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |