Correlation Between LOBO EV and NETGEAR

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

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

Diversification Opportunities for LOBO EV and NETGEAR

0.22

Correlation Coefficient

LOBO EV  NETGEAR

Modest diversification

The 3 months correlation between LOBO and NETGEAR is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding LOBO EV TECHNOLOGIES and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and LOBO EV 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 LOBO EV TECHNOLOGIES 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 LOBO EV i.e., LOBO EV and NETGEAR go up and down completely randomly.

Pair Corralation between LOBO EV and NETGEAR

Given the investment horizon of 90 days LOBO EV is expected to generate 4.48 times less return on investment than NETGEAR. In addition to that, LOBO EV is 4.11 times more volatile than NETGEAR. It trades about 0.0 of its total potential returns per unit of risk. NETGEAR is currently generating about 0.05 per unit of volatility. If you would invest  2,400  in NETGEAR on April 29, 2025 and sell it today you would earn a total of  178.00  from holding NETGEAR or generate 7.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

LOBO EV TECHNOLOGIES  vs.  NETGEAR

LOBO EV TECHNOLOGIES

Risk-Adjusted Performance

Very Weak

Over the last 90 days LOBO EV TECHNOLOGIES has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental drivers, LOBO EV is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

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 LOBO EV and NETGEAR

The main advantage of trading using opposite LOBO EV and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOBO EV 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 LOBO EV TECHNOLOGIES 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.