Correlation Between NETGEAR and Ihuman
Can any of the company-specific risk be diversified away by investing in both NETGEAR and Ihuman 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 Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Ihuman Inc, you can compare the effects of market volatilities on NETGEAR and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Ihuman.
Diversification Opportunities for NETGEAR and Ihuman
Pay attention - limited upside
The 3 months correlation between NETGEAR and Ihuman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of NETGEAR i.e., NETGEAR and Ihuman go up and down completely randomly.
Pair Corralation between NETGEAR and Ihuman
Given the investment horizon of 90 days NETGEAR is expected to generate 1.08 times more return on investment than Ihuman. However, NETGEAR is 1.08 times more volatile than Ihuman Inc. It trades about 0.16 of its potential returns per unit of risk. Ihuman Inc is currently generating about 0.04 per unit of risk. If you would invest 1,624 in NETGEAR on August 29, 2024 and sell it today you would earn a total of 780.00 from holding NETGEAR or generate 48.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NETGEAR vs. Ihuman Inc
Performance |
| Timeline |
| NETGEAR |
| Ihuman Inc |
NETGEAR and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Ihuman
The main advantage of trading using opposite NETGEAR and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| NETGEAR vs. KVH Industries | NETGEAR vs. Merck Company | NETGEAR vs. Pharvaris BV | NETGEAR vs. Brinker International |
| Ihuman vs. Gaotu Techedu DRC | Ihuman vs. TAL Education Group | Ihuman vs. Strategic Education | Ihuman vs. Vasta Platform |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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