Correlation Between Lifestore Financial and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Lifestore Financial 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 Lifestore Financial and NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lifestore Financial Group and NETGEAR, you can compare the effects of market volatilities on Lifestore Financial 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 Lifestore Financial with a short position of NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lifestore Financial and NETGEAR.
Diversification Opportunities for Lifestore Financial and NETGEAR
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lifestore and NETGEAR is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Lifestore Financial Group and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and Lifestore Financial 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 Lifestore Financial Group 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 Lifestore Financial i.e., Lifestore Financial and NETGEAR go up and down completely randomly.
Pair Corralation between Lifestore Financial and NETGEAR
If you would invest 2,309 in NETGEAR on September 6, 2024 and sell it today you would earn a total of 227.00 from holding NETGEAR or generate 9.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 4.55% |
Values | Daily Returns |
Lifestore Financial Group vs. NETGEAR
Performance |
Timeline |
Lifestore Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
NETGEAR |
Lifestore Financial and NETGEAR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lifestore Financial and NETGEAR
The main advantage of trading using opposite Lifestore Financial and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifestore Financial 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.Lifestore Financial vs. Hooker Furniture | Lifestore Financial vs. Simpson Manufacturing | Lifestore Financial vs. Skyline | Lifestore Financial vs. Newpark Resources |
NETGEAR vs. KVH Industries | NETGEAR vs. Aviat Networks | NETGEAR vs. Juniper Networks | NETGEAR vs. Digi International |
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.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Equity Valuation Check real value of public entities based on technical and fundamental data |