Correlation Between NETGEAR and Maplebear

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

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

Diversification Opportunities for NETGEAR and Maplebear

-0.16

Correlation Coefficient

NETGEAR  Maplebear

Good diversification

The 3 months correlation between NETGEAR and Maplebear is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Maplebear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear 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 Maplebear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear has no effect on the direction of NETGEAR i.e., NETGEAR and Maplebear go up and down completely randomly.

Pair Corralation between NETGEAR and Maplebear

Given the investment horizon of 90 days NETGEAR is expected to under-perform the Maplebear. In addition to that, NETGEAR is 1.11 times more volatile than Maplebear. It trades about -0.05 of its total potential returns per unit of risk. Maplebear is currently generating about -0.04 per unit of volatility. 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

NETGEAR  vs.  Maplebear

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.

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.

Pair Trading with NETGEAR and Maplebear

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

The idea behind NETGEAR and Maplebear 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.