Correlation Between NETGEAR and Inhibrx
Can any of the company-specific risk be diversified away by investing in both NETGEAR and Inhibrx 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 Inhibrx into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Inhibrx, you can compare the effects of market volatilities on NETGEAR and Inhibrx 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 Inhibrx. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Inhibrx.
Diversification Opportunities for NETGEAR and Inhibrx
Pay attention - limited upside
The 3 months correlation between NETGEAR and Inhibrx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Inhibrx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inhibrx 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 Inhibrx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inhibrx has no effect on the direction of NETGEAR i.e., NETGEAR and Inhibrx go up and down completely randomly.
Pair Corralation between NETGEAR and Inhibrx
Given the investment horizon of 90 days NETGEAR is expected to generate 0.55 times more return on investment than Inhibrx. However, NETGEAR is 1.81 times less risky than Inhibrx. It trades about 0.21 of its potential returns per unit of risk. Inhibrx is currently generating about -0.03 per unit of risk. If you would invest 2,278 in NETGEAR on September 2, 2024 and sell it today you would earn a total of 182.00 from holding NETGEAR or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NETGEAR vs. Inhibrx
Performance |
| Timeline |
| NETGEAR |
| Inhibrx |
NETGEAR and Inhibrx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Inhibrx
The main advantage of trading using opposite NETGEAR and Inhibrx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, Inhibrx 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 Inhibrx will offset losses from the drop in Inhibrx's long position.| NETGEAR vs. Comtech Telecommunications Corp | NETGEAR vs. KVH Industries | NETGEAR vs. Silicom | NETGEAR vs. Knowles Cor |
| Inhibrx vs. Crinetics Pharmaceuticals | Inhibrx vs. Merus BV | Inhibrx vs. Lyell Immunopharma | Inhibrx vs. Kronos Bio |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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