Correlation Between Black Mammoth and NETGEAR

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

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

Diversification Opportunities for Black Mammoth and NETGEAR

-0.48

Correlation Coefficient

Black Mammoth  NETGEAR

Very good diversification

The 3 months correlation between Black and NETGEAR is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Black Mammoth Metals and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and Black Mammoth 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 Black Mammoth Metals 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 Black Mammoth i.e., Black Mammoth and NETGEAR go up and down completely randomly.

Pair Corralation between Black Mammoth and NETGEAR

Assuming the 90 days horizon Black Mammoth Metals is expected to generate 1.4 times more return on investment than NETGEAR. However, Black Mammoth is 1.4 times more volatile than NETGEAR. It trades about 0.11 of its potential returns per unit of risk. NETGEAR is currently generating about -0.12 per unit of risk. If you would invest  119.00  in Black Mammoth Metals on May 4, 2025 and sell it today you would earn a total of  27.00  from holding Black Mammoth Metals or generate 22.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Black Mammoth Metals  vs.  NETGEAR

Black Mammoth Metals

Risk-Adjusted Performance

OK

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

NETGEAR

Risk-Adjusted Performance

Very Weak

Over the last 90 days NETGEAR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Black Mammoth and NETGEAR

The main advantage of trading using opposite Black Mammoth and NETGEAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Mammoth 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 Black Mammoth Metals 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.