Correlation Between BranchOut Food and NETGEAR

Can any of the company-specific risk be diversified away by investing in both BranchOut Food 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 BranchOut Food and NETGEAR into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BranchOut Food Common and NETGEAR, you can compare the effects of market volatilities on BranchOut Food 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 BranchOut Food with a short position of NETGEAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of BranchOut Food and NETGEAR.

Diversification Opportunities for BranchOut Food and NETGEAR

-0.08

Correlation Coefficient

BranchOut Food  NETGEAR

Good diversification

The 3 months correlation between BranchOut and NETGEAR is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding BranchOut Food Common and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and BranchOut Food 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 BranchOut Food Common 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 BranchOut Food i.e., BranchOut Food and NETGEAR go up and down completely randomly.

Pair Corralation between BranchOut Food and NETGEAR

Considering the 90-day investment horizon BranchOut Food Common is expected to generate 1.72 times more return on investment than NETGEAR. However, BranchOut Food is 1.72 times more volatile than NETGEAR. It trades about 0.11 of its potential returns per unit of risk. NETGEAR is currently generating about 0.05 per unit of risk. If you would invest  191.00  in BranchOut Food Common on April 29, 2025 and sell it today you would earn a total of  58.00  from holding BranchOut Food Common or generate 30.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

BranchOut Food Common  vs.  NETGEAR

BranchOut Food Common

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BranchOut Food Common are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, BranchOut Food reported solid returns over the last few months and may actually be approaching a breakup point.

NETGEAR

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in NETGEAR are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, NETGEAR may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with BranchOut Food and NETGEAR

The main advantage of trading using opposite BranchOut Food and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BranchOut Food 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.

The idea behind BranchOut Food Common and NETGEAR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.