Correlation Between NETGEAR and BCE

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

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

Diversification Opportunities for NETGEAR and BCE

-0.51

Correlation Coefficient

NETGEAR  BCE

Excellent diversification

The 3 months correlation between NETGEAR and BCE is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and BCE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCE Inc and NETGEAR 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 NETGEAR are associated (or correlated) with BCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCE Inc has no effect on the direction of NETGEAR i.e., NETGEAR and BCE go up and down completely randomly.

Pair Corralation between NETGEAR and BCE

Given the investment horizon of 90 days NETGEAR is expected to under-perform the BCE. In addition to that, NETGEAR is 1.9 times more volatile than BCE Inc. It trades about -0.1 of its total potential returns per unit of risk. BCE Inc is currently generating about 0.15 per unit of volatility. If you would invest  2,168  in BCE Inc on May 13, 2025 and sell it today you would earn a total of  267.00  from holding BCE Inc or generate 12.32% return on investment over 90 days.

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

NETGEAR  vs.  BCE Inc

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 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.

BCE Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in BCE Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, BCE may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with NETGEAR and BCE

The main advantage of trading using opposite NETGEAR and BCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NETGEAR position performs unexpectedly, BCE 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 BCE will offset losses from the drop in BCE's long position.

The idea behind NETGEAR and BCE Inc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.