Correlation Between CHUBB and NETGEAR
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By analyzing existing cross correlation between CHUBB P 6 and NETGEAR, you can compare the effects of market volatilities on CHUBB 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 CHUBB with a short position of NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHUBB and NETGEAR.
Diversification Opportunities for CHUBB and NETGEAR
Very good diversification
The 3 months correlation between CHUBB and NETGEAR is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding CHUBB P 6 and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and CHUBB 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 CHUBB P 6 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 CHUBB i.e., CHUBB and NETGEAR go up and down completely randomly.
Pair Corralation between CHUBB and NETGEAR
Assuming the 90 days trading horizon CHUBB is expected to generate 9.87 times less return on investment than NETGEAR. But when comparing it to its historical volatility, CHUBB P 6 is 4.2 times less risky than NETGEAR. It trades about 0.04 of its potential returns per unit of risk. NETGEAR is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,400 in NETGEAR on September 2, 2024 and sell it today you would earn a total of 1,060 from holding NETGEAR or generate 75.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.61% |
| Values | Daily Returns |
CHUBB P 6 vs. NETGEAR
Performance |
| Timeline |
| CHUBB P 6 |
| NETGEAR |
CHUBB and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHUBB and NETGEAR
The main advantage of trading using opposite CHUBB and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHUBB 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.| CHUBB vs. Perseus Mining Limited | CHUBB vs. Definitive Healthcare Corp | CHUBB vs. Mangazeya Mining | CHUBB vs. Zijin Mining Group |
| NETGEAR vs. Comtech Telecommunications Corp | NETGEAR vs. KVH Industries | NETGEAR vs. Silicom | NETGEAR vs. Knowles Cor |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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