Correlation Between Mobix Labs and NetApp
Can any of the company-specific risk be diversified away by investing in both Mobix Labs and NetApp 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 Mobix Labs and NetApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mobix Labs and NetApp Inc, you can compare the effects of market volatilities on Mobix Labs and NetApp 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 Mobix Labs with a short position of NetApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mobix Labs and NetApp.
Diversification Opportunities for Mobix Labs and NetApp
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mobix and NetApp is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Mobix Labs and NetApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetApp Inc and Mobix Labs 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 Mobix Labs are associated (or correlated) with NetApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetApp Inc has no effect on the direction of Mobix Labs i.e., Mobix Labs and NetApp go up and down completely randomly.
Pair Corralation between Mobix Labs and NetApp
Given the investment horizon of 90 days Mobix Labs is expected to generate 15.44 times less return on investment than NetApp. In addition to that, Mobix Labs is 2.13 times more volatile than NetApp Inc. It trades about 0.01 of its total potential returns per unit of risk. NetApp Inc is currently generating about 0.24 per unit of volatility. If you would invest 7,670 in NetApp Inc on April 6, 2025 and sell it today you would earn a total of 3,056 from holding NetApp Inc or generate 39.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mobix Labs vs. NetApp Inc
Performance |
| Timeline |
| Mobix Labs |
| NetApp Inc |
Mobix Labs and NetApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mobix Labs and NetApp
The main advantage of trading using opposite Mobix Labs and NetApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mobix Labs position performs unexpectedly, NetApp 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 NetApp will offset losses from the drop in NetApp's long position.| Mobix Labs vs. Diodes Incorporated | Mobix Labs vs. Daqo New Energy | Mobix Labs vs. Micron Technology | Mobix Labs vs. MagnaChip Semiconductor |
| NetApp vs. Old Republic International | NetApp vs. IPG Photonics | NetApp vs. Cincinnati Financial | NetApp vs. The Peoples Insurance |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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