Correlation Between NETGEAR and Flagstar Bancorp
Can any of the company-specific risk be diversified away by investing in both NETGEAR and Flagstar Bancorp 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 Flagstar Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Flagstar Bancorp, you can compare the effects of market volatilities on NETGEAR and Flagstar Bancorp 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 Flagstar Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Flagstar Bancorp.
Diversification Opportunities for NETGEAR and Flagstar Bancorp
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NETGEAR and Flagstar is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Flagstar Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flagstar Bancorp 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 Flagstar Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flagstar Bancorp has no effect on the direction of NETGEAR i.e., NETGEAR and Flagstar Bancorp go up and down completely randomly.
Pair Corralation between NETGEAR and Flagstar Bancorp
If you would invest 1,267 in NETGEAR on September 12, 2024 and sell it today you would earn a total of 1,259 from holding NETGEAR or generate 99.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.3% |
| Values | Daily Returns |
NETGEAR vs. Flagstar Bancorp
Performance |
| Timeline |
| NETGEAR |
| Flagstar Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NETGEAR and Flagstar Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Flagstar Bancorp
The main advantage of trading using opposite NETGEAR and Flagstar Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, Flagstar Bancorp 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 Flagstar Bancorp will offset losses from the drop in Flagstar Bancorp's long position.| NETGEAR vs. Hewlett Packard Enterprise | NETGEAR vs. Juniper Networks | NETGEAR vs. Ciena Corp | NETGEAR vs. Cisco Systems |
| Flagstar Bancorp vs. AKITA Drilling | Flagstar Bancorp vs. NETGEAR | Flagstar Bancorp vs. Iridium Communications | Flagstar Bancorp vs. Monster Beverage Corp |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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