Correlation Between NETGEAR and Live Ventures
Can any of the company-specific risk be diversified away by investing in both NETGEAR and Live Ventures 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 Live Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Live Ventures, you can compare the effects of market volatilities on NETGEAR and Live Ventures 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 Live Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Live Ventures.
Diversification Opportunities for NETGEAR and Live Ventures
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NETGEAR and Live is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Live Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Ventures 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 Live Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Ventures has no effect on the direction of NETGEAR i.e., NETGEAR and Live Ventures go up and down completely randomly.
Pair Corralation between NETGEAR and Live Ventures
Given the investment horizon of 90 days NETGEAR is expected to generate 0.52 times more return on investment than Live Ventures. However, NETGEAR is 1.93 times less risky than Live Ventures. It trades about 0.45 of its potential returns per unit of risk. Live Ventures is currently generating about 0.04 per unit of risk. If you would invest 2,022 in NETGEAR on August 26, 2024 and sell it today you would earn a total of 408.00 from holding NETGEAR or generate 20.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NETGEAR vs. Live Ventures
Performance |
| Timeline |
| NETGEAR |
| Live Ventures |
NETGEAR and Live Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Live Ventures
The main advantage of trading using opposite NETGEAR and Live Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, Live Ventures 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 Live Ventures will offset losses from the drop in Live Ventures' long position.| NETGEAR vs. Ichor Holdings | NETGEAR vs. Fabrinet | NETGEAR vs. Hello Group | NETGEAR vs. Ultra Clean Holdings |
| Live Ventures vs. Arhaus Inc | Live Ventures vs. Floor Decor Holdings | Live Ventures vs. Haverty Furniture Companies | Live Ventures vs. Kingfisher plc |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |