Correlation Between NETGEAR and JetAI

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

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

Diversification Opportunities for NETGEAR and JetAI

0.12

Correlation Coefficient

NETGEAR  JetAI

Average diversification

The 3 months correlation between NETGEAR and JetAI is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and JetAI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetAI 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 JetAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetAI Inc has no effect on the direction of NETGEAR i.e., NETGEAR and JetAI go up and down completely randomly.

Pair Corralation between NETGEAR and JetAI

Given the investment horizon of 90 days NETGEAR is expected to generate 0.79 times more return on investment than JetAI. However, NETGEAR is 1.26 times less risky than JetAI. It trades about 0.13 of its potential returns per unit of risk. JetAI Inc is currently generating about 0.03 per unit of risk. If you would invest  2,200  in NETGEAR on April 23, 2025 and sell it today you would earn a total of  549.00  from holding NETGEAR or generate 24.95% return on investment over 90 days.

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

NETGEAR  vs.  JetAI Inc

NETGEAR

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NETGEAR are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, NETGEAR reported solid returns over the last few months and may actually be approaching a breakup point.

JetAI Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in JetAI Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, JetAI may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with NETGEAR and JetAI

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

The idea behind NETGEAR and JetAI 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.