Correlation Between NETGEAR and Foxx Development
Can any of the company-specific risk be diversified away by investing in both NETGEAR and Foxx Development 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 Foxx Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Foxx Development Holdings, you can compare the effects of market volatilities on NETGEAR and Foxx Development 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 Foxx Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Foxx Development.
Diversification Opportunities for NETGEAR and Foxx Development
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NETGEAR and Foxx is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Foxx Development Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foxx Development 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 Foxx Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foxx Development Holdings has no effect on the direction of NETGEAR i.e., NETGEAR and Foxx Development go up and down completely randomly.
Pair Corralation between NETGEAR and Foxx Development
Given the investment horizon of 90 days NETGEAR is expected to generate 148.18 times less return on investment than Foxx Development. But when comparing it to its historical volatility, NETGEAR is 16.87 times less risky than Foxx Development. It trades about 0.02 of its potential returns per unit of risk. Foxx Development Holdings is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Foxx Development Holdings on November 4, 2024 and sell it today you would earn a total of 13.00 from holding Foxx Development Holdings or generate 92.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NETGEAR vs. Foxx Development Holdings
Performance |
| Timeline |
| NETGEAR |
| Foxx Development Holdings |
NETGEAR and Foxx Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Foxx Development
The main advantage of trading using opposite NETGEAR and Foxx Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, Foxx Development 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 Foxx Development will offset losses from the drop in Foxx Development's long position.| NETGEAR vs. KVH Industries | NETGEAR vs. Ituran Location and | NETGEAR vs. Aviat Networks | NETGEAR vs. Mynaric AG ADR |
| Foxx Development vs. FitLife Brands, Common | Foxx Development vs. NH Foods Ltd | Foxx Development vs. Western Acquisition Ventures | Foxx Development vs. Village Super Market |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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