Correlation Between U-Haul Holding and NETGEAR
Can any of the company-specific risk be diversified away by investing in both U-Haul Holding and NETGEAR 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 U-Haul Holding and NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Haul Holding and NETGEAR, you can compare the effects of market volatilities on U-Haul Holding and NETGEAR 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 U-Haul Holding with a short position of NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of U-Haul Holding and NETGEAR.
Diversification Opportunities for U-Haul Holding and NETGEAR
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between U-Haul and NETGEAR is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding U Haul Holding and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and U-Haul Holding 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 U Haul Holding are associated (or correlated) with NETGEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETGEAR has no effect on the direction of U-Haul Holding i.e., U-Haul Holding and NETGEAR go up and down completely randomly.
Pair Corralation between U-Haul Holding and NETGEAR
Assuming the 90 days trading horizon U-Haul Holding is expected to generate 2.62 times less return on investment than NETGEAR. But when comparing it to its historical volatility, U Haul Holding is 1.45 times less risky than NETGEAR. It trades about 0.01 of its potential returns per unit of risk. NETGEAR is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,066 in NETGEAR on August 27, 2024 and sell it today you would earn a total of 364.00 from holding NETGEAR or generate 17.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
U Haul Holding vs. NETGEAR
Performance |
| Timeline |
| U Haul Holding |
| NETGEAR |
U-Haul Holding and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U-Haul Holding and NETGEAR
The main advantage of trading using opposite U-Haul Holding and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U-Haul Holding position performs unexpectedly, NETGEAR 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 NETGEAR will offset losses from the drop in NETGEAR's long position.| U-Haul Holding vs. JD Sports Fashion | U-Haul Holding vs. SkyWest | U-Haul Holding vs. Emerson Radio | U-Haul Holding vs. Nok Airlines Public |
| NETGEAR vs. KVH Industries | NETGEAR vs. Ituran Location and | NETGEAR vs. Aviat Networks | NETGEAR vs. Mynaric AG ADR |
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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