Correlation Between NETGEAR and Minim

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

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

Diversification Opportunities for NETGEAR and Minim

-0.42

Correlation Coefficient

NETGEAR  Minim

Very good diversification

The 3 months correlation between NETGEAR and Minim is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding NETGEAR and Minim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minim 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 Minim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minim Inc has no effect on the direction of NETGEAR i.e., NETGEAR and Minim go up and down completely randomly.

Pair Corralation between NETGEAR and Minim

Given the investment horizon of 90 days NETGEAR is expected to under-perform the Minim. But the stock apears to be less risky and, when comparing its historical volatility, NETGEAR is 10.76 times less risky than Minim. The stock trades about -0.09 of its potential returns per unit of risk. The Minim Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  117.00  in Minim Inc on May 8, 2025 and sell it today you would earn a total of  214.00  from holding Minim Inc or generate 182.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	69.35%
Values	Daily Returns

NETGEAR  vs.  Minim 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 uncertain 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.

Minim Inc

Risk-Adjusted Performance

Good

Over the last 90 days Minim Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very uncertain basic indicators, Minim displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with NETGEAR and Minim

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

The idea behind NETGEAR and Minim 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.