Correlation Between Eightco Holdings and NETGEAR
Can any of the company-specific risk be diversified away by investing in both Eightco Holdings 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 Eightco Holdings and NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eightco Holdings and NETGEAR, you can compare the effects of market volatilities on Eightco Holdings 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 Eightco Holdings with a short position of NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eightco Holdings and NETGEAR.
Diversification Opportunities for Eightco Holdings and NETGEAR
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eightco and NETGEAR is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Eightco Holdings and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and Eightco Holdings 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 Eightco Holdings 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 Eightco Holdings i.e., Eightco Holdings and NETGEAR go up and down completely randomly.
Pair Corralation between Eightco Holdings and NETGEAR
Given the investment horizon of 90 days Eightco Holdings is expected to under-perform the NETGEAR. In addition to that, Eightco Holdings is 3.12 times more volatile than NETGEAR. It trades about -0.23 of its total potential returns per unit of risk. NETGEAR is currently generating about -0.04 per unit of volatility. If you would invest 2,865 in NETGEAR on September 12, 2025 and sell it today you would lose (289.00) from holding NETGEAR or give up 10.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eightco Holdings vs. NETGEAR
Performance |
| Timeline |
| Eightco Holdings |
| NETGEAR |
Eightco Holdings and NETGEAR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eightco Holdings and NETGEAR
The main advantage of trading using opposite Eightco Holdings and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eightco Holdings 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.| Eightco Holdings vs. ScanSource | Eightco Holdings vs. Cantaloupe | Eightco Holdings vs. Arqit Quantum | Eightco Holdings vs. Ibotta, |
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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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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