Correlation Between NETGEAR and EXXON
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By analyzing existing cross correlation between NETGEAR and EXXON MOBIL P, you can compare the effects of market volatilities on NETGEAR and EXXON 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 EXXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and EXXON.
Diversification Opportunities for NETGEAR and EXXON
Excellent diversification
The 3 months correlation between NETGEAR and EXXON is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and EXXON MOBIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL P 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 EXXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL P has no effect on the direction of NETGEAR i.e., NETGEAR and EXXON go up and down completely randomly.
Pair Corralation between NETGEAR and EXXON
Given the investment horizon of 90 days NETGEAR is expected to generate 4.05 times more return on investment than EXXON. However, NETGEAR is 4.05 times more volatile than EXXON MOBIL P. It trades about 0.16 of its potential returns per unit of risk. EXXON MOBIL P is currently generating about 0.03 per unit of risk. If you would invest 1,206 in NETGEAR on September 3, 2024 and sell it today you would earn a total of 1,254 from holding NETGEAR or generate 103.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.63% |
| Values | Daily Returns |
NETGEAR vs. EXXON MOBIL P
Performance |
| Timeline |
| NETGEAR |
| EXXON MOBIL P |
NETGEAR and EXXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and EXXON
The main advantage of trading using opposite NETGEAR and EXXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, EXXON 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 EXXON will offset losses from the drop in EXXON's long position.| NETGEAR vs. Hewlett Packard Enterprise | NETGEAR vs. Juniper Networks | NETGEAR vs. Motorola Solutions | NETGEAR vs. Cisco Systems |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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