Correlation Between Maplebear and NETGEAR

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

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

Diversification Opportunities for Maplebear and NETGEAR

-0.16

Correlation Coefficient

Maplebear  NETGEAR

Good diversification

The 3 months correlation between Maplebear and NETGEAR is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Maplebear and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and Maplebear 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 Maplebear 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 Maplebear i.e., Maplebear and NETGEAR go up and down completely randomly.

Pair Corralation between Maplebear and NETGEAR

Given the investment horizon of 90 days Maplebear is expected to generate 0.9 times more return on investment than NETGEAR. However, Maplebear is 1.11 times less risky than NETGEAR. It trades about -0.04 of its potential returns per unit of risk. NETGEAR is currently generating about -0.05 per unit of risk. If you would invest  4,705  in Maplebear on May 25, 2025 and sell it today you would lose (368.00) from holding Maplebear or give up 7.82% of portfolio value over 90 days.

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

Maplebear  vs.  NETGEAR

Maplebear

Risk-Adjusted Performance

Weakest

Over the last 90 days Maplebear has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

NETGEAR

Risk-Adjusted Performance

Weakest

Over the last 90 days NETGEAR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Pair Trading with Maplebear and NETGEAR

The main advantage of trading using opposite Maplebear and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maplebear 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 Maplebear 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.