Correlation Between Castle Biosciences and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Castle Biosciences 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 Castle Biosciences and NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castle Biosciences and NETGEAR, you can compare the effects of market volatilities on Castle Biosciences 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 Castle Biosciences with a short position of NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castle Biosciences and NETGEAR.
Diversification Opportunities for Castle Biosciences and NETGEAR
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Castle and NETGEAR is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Castle Biosciences and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and Castle Biosciences 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 Castle Biosciences 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 Castle Biosciences i.e., Castle Biosciences and NETGEAR go up and down completely randomly.
Pair Corralation between Castle Biosciences and NETGEAR
Given the investment horizon of 90 days Castle Biosciences is expected to under-perform the NETGEAR. But the stock apears to be less risky and, when comparing its historical volatility, Castle Biosciences is 1.11 times less risky than NETGEAR. The stock trades about -0.11 of its potential returns per unit of risk. The NETGEAR is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,432 in NETGEAR on April 26, 2025 and sell it today you would earn a total of 146.00 from holding NETGEAR or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castle Biosciences vs. NETGEAR
Performance |
| Timeline |
| Castle Biosciences |
| NETGEAR |
Castle Biosciences and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castle Biosciences and NETGEAR
The main advantage of trading using opposite Castle Biosciences and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castle Biosciences 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.| Castle Biosciences vs. Personalis | Castle Biosciences vs. Sera Prognostics | Castle Biosciences vs. CareDx Inc | Castle Biosciences vs. DarioHealth Corp |
| NETGEAR vs. Knowles Cor | NETGEAR vs. Extreme Networks | NETGEAR vs. KVH Industries | NETGEAR vs. Comtech Telecommunications Corp |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |