Correlation Between NETGEAR and PACIFIC
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By analyzing existing cross correlation between NETGEAR and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on NETGEAR and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of NETGEAR and PACIFIC.
Diversification Opportunities for NETGEAR and PACIFIC
Very weak diversification
The 3 months correlation between NETGEAR and PACIFIC is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of NETGEAR i.e., NETGEAR and PACIFIC go up and down completely randomly.
Pair Corralation between NETGEAR and PACIFIC
Given the investment horizon of 90 days NETGEAR is expected to generate 12.35 times more return on investment than PACIFIC. However, NETGEAR is 12.35 times more volatile than PACIFIC GAS ELECTRIC. It trades about 0.16 of its potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about 0.05 per unit of risk. If you would invest 1,149 in NETGEAR on November 3, 2024 and sell it today you would earn a total of 1,616 from holding NETGEAR or generate 140.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.92% |
| Values | Daily Returns |
NETGEAR vs. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| NETGEAR |
| PACIFIC GAS ELECTRIC |
NETGEAR and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NETGEAR and PACIFIC
The main advantage of trading using opposite NETGEAR and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.| NETGEAR vs. KVH Industries | NETGEAR vs. Ituran Location and | NETGEAR vs. Aviat Networks | NETGEAR vs. Mynaric AG ADR |
| PACIFIC vs. Mako Mining Corp | PACIFIC vs. Nicola Mining | PACIFIC vs. NRG Energy | PACIFIC vs. Antero Midstream Partners |
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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