Correlation Between NETGEAR and LogicMark
Can any of the company-specific risk be diversified away by investing in both NETGEAR and LogicMark 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 LogicMark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and LogicMark, you can compare the effects of market volatilities on NETGEAR and LogicMark 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 LogicMark. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and LogicMark.
Diversification Opportunities for NETGEAR and LogicMark
Excellent diversification
The 3 months correlation between NETGEAR and LogicMark is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and LogicMark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LogicMark 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 LogicMark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LogicMark has no effect on the direction of NETGEAR i.e., NETGEAR and LogicMark go up and down completely randomly.
Pair Corralation between NETGEAR and LogicMark
Given the investment horizon of 90 days NETGEAR is expected to generate 0.41 times more return on investment than LogicMark. However, NETGEAR is 2.43 times less risky than LogicMark. It trades about 0.09 of its potential returns per unit of risk. LogicMark is currently generating about -0.11 per unit of risk. If you would invest 1,432 in NETGEAR on November 3, 2024 and sell it today you would earn a total of 1,333 from holding NETGEAR or generate 93.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NETGEAR vs. LogicMark
Performance |
| Timeline |
| NETGEAR |
| LogicMark |
NETGEAR and LogicMark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and LogicMark
The main advantage of trading using opposite NETGEAR and LogicMark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, LogicMark 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 LogicMark will offset losses from the drop in LogicMark's long position.| NETGEAR vs. KVH Industries | NETGEAR vs. Ituran Location and | NETGEAR vs. Aviat Networks | NETGEAR vs. Mynaric AG ADR |
| LogicMark vs. Guardforce AI Co | LogicMark vs. Knightscope | LogicMark vs. Bridger Aerospace Group | LogicMark vs. Iveda Solutions |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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