Correlation Between NETGEAR and CHUBB
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By analyzing existing cross correlation between NETGEAR and CHUBB P 6, you can compare the effects of market volatilities on NETGEAR and CHUBB 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 CHUBB. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and CHUBB.
Diversification Opportunities for NETGEAR and CHUBB
Very good diversification
The 3 months correlation between NETGEAR and CHUBB is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and CHUBB P 6 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHUBB P 6 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 CHUBB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHUBB P 6 has no effect on the direction of NETGEAR i.e., NETGEAR and CHUBB go up and down completely randomly.
Pair Corralation between NETGEAR and CHUBB
Given the investment horizon of 90 days NETGEAR is expected to generate 4.52 times more return on investment than CHUBB. However, NETGEAR is 4.52 times more volatile than CHUBB P 6. It trades about 0.15 of its potential returns per unit of risk. CHUBB P 6 is currently generating about 0.07 per unit of risk. If you would invest 1,343 in NETGEAR on September 2, 2024 and sell it today you would earn a total of 1,117 from holding NETGEAR or generate 83.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 73.81% |
| Values | Daily Returns |
NETGEAR vs. CHUBB P 6
Performance |
| Timeline |
| NETGEAR |
| CHUBB P 6 |
NETGEAR and CHUBB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and CHUBB
The main advantage of trading using opposite NETGEAR and CHUBB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, CHUBB 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 CHUBB will offset losses from the drop in CHUBB's long position.| NETGEAR vs. Comtech Telecommunications Corp | NETGEAR vs. KVH Industries | NETGEAR vs. Silicom | NETGEAR vs. Knowles Cor |
| CHUBB vs. Perseus Mining Limited | CHUBB vs. Definitive Healthcare Corp | CHUBB vs. Mangazeya Mining | CHUBB vs. Zijin Mining Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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