Correlation Between KVH Industries and NETGEAR
Can any of the company-specific risk be diversified away by investing in both KVH Industries 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 KVH Industries and NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and NETGEAR, you can compare the effects of market volatilities on KVH Industries 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 KVH Industries with a short position of NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and NETGEAR.
Diversification Opportunities for KVH Industries and NETGEAR
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between KVH and NETGEAR is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and KVH Industries 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 KVH Industries 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 KVH Industries i.e., KVH Industries and NETGEAR go up and down completely randomly.
Pair Corralation between KVH Industries and NETGEAR
Given the investment horizon of 90 days KVH Industries is expected to generate 0.59 times more return on investment than NETGEAR. However, KVH Industries is 1.7 times less risky than NETGEAR. It trades about 0.08 of its potential returns per unit of risk. NETGEAR is currently generating about -0.05 per unit of risk. If you would invest 537.00 in KVH Industries on May 28, 2025 and sell it today you would earn a total of 37.00 from holding KVH Industries or generate 6.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. NETGEAR
Performance |
| Timeline |
| KVH Industries |
| NETGEAR |
KVH Industries and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and NETGEAR
The main advantage of trading using opposite KVH Industries and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries 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.| KVH Industries vs. Knowles Cor | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Ituran Location and | KVH Industries vs. Aviat Networks |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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