Correlation Between NETGEAR and Mako Mining
Can any of the company-specific risk be diversified away by investing in both NETGEAR and Mako Mining 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 Mako Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NETGEAR and Mako Mining Corp, you can compare the effects of market volatilities on NETGEAR and Mako Mining 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 Mako Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and Mako Mining.
Diversification Opportunities for NETGEAR and Mako Mining
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between NETGEAR and Mako is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Mako Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mako Mining Corp 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 Mako Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mako Mining Corp has no effect on the direction of NETGEAR i.e., NETGEAR and Mako Mining go up and down completely randomly.
Pair Corralation between NETGEAR and Mako Mining
Given the investment horizon of 90 days NETGEAR is expected to generate 1.03 times more return on investment than Mako Mining. However, NETGEAR is 1.03 times more volatile than Mako Mining Corp. It trades about 0.1 of its potential returns per unit of risk. Mako Mining Corp is currently generating about 0.07 per unit of risk. If you would invest 1,387 in NETGEAR on November 9, 2024 and sell it today you would earn a total of 1,466 from holding NETGEAR or generate 105.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NETGEAR vs. Mako Mining Corp
Performance |
| Timeline |
| NETGEAR |
| Mako Mining Corp |
NETGEAR and Mako Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and Mako Mining
The main advantage of trading using opposite NETGEAR and Mako Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, Mako Mining 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 Mako Mining will offset losses from the drop in Mako Mining's long position.| NETGEAR vs. KVH Industries | NETGEAR vs. Ituran Location and | NETGEAR vs. Aviat Networks | NETGEAR vs. Mynaric AG ADR |
| Mako Mining vs. Labrador Gold Corp | Mako Mining vs. Exploits Discovery Corp | Mako Mining vs. Puma Exploration | Mako Mining vs. White Gold Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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