Correlation Between Medical Properties and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Medical Properties 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 Medical Properties and NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust and NETGEAR, you can compare the effects of market volatilities on Medical Properties 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 Medical Properties with a short position of NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and NETGEAR.
Diversification Opportunities for Medical Properties and NETGEAR
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Medical and NETGEAR is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and Medical Properties 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 Medical Properties Trust 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 Medical Properties i.e., Medical Properties and NETGEAR go up and down completely randomly.
Pair Corralation between Medical Properties and NETGEAR
Considering the 90-day investment horizon Medical Properties Trust is expected to generate 0.95 times more return on investment than NETGEAR. However, Medical Properties Trust is 1.05 times less risky than NETGEAR. It trades about 0.19 of its potential returns per unit of risk. NETGEAR is currently generating about 0.06 per unit of risk. If you would invest 408.00 in Medical Properties Trust on July 9, 2025 and sell it today you would earn a total of 132.00 from holding Medical Properties Trust or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust vs. NETGEAR
Performance |
| Timeline |
| Medical Properties Trust |
| NETGEAR |
Medical Properties and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and NETGEAR
The main advantage of trading using opposite Medical Properties and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties 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.| Medical Properties vs. Omega Healthcare Investors | Medical Properties vs. LTC Properties | Medical Properties vs. Healthpeak Properties | Medical Properties vs. Global Medical REIT |
| 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |