Correlation Between Network 1 and Clear Secure

Can any of the company-specific risk be diversified away by investing in both Network 1 and Clear Secure 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 Network 1 and Clear Secure into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Network 1 Technologies and Clear Secure, you can compare the effects of market volatilities on Network 1 and Clear Secure 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 Network 1 with a short position of Clear Secure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Network 1 and Clear Secure.

Diversification Opportunities for Network 1 and Clear Secure

0.78

Correlation Coefficient

Network 1  Clear Secure

Poor diversification

The 3 months correlation between Network and Clear is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Network 1 Technologies and Clear Secure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Secure and Network 1 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 Network 1 Technologies are associated (or correlated) with Clear Secure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Secure has no effect on the direction of Network 1 i.e., Network 1 and Clear Secure go up and down completely randomly.

Pair Corralation between Network 1 and Clear Secure

Given the investment horizon of 90 days Network 1 is expected to generate 2.39 times less return on investment than Clear Secure. In addition to that, Network 1 is 1.01 times more volatile than Clear Secure. It trades about 0.1 of its total potential returns per unit of risk. Clear Secure is currently generating about 0.24 per unit of volatility. If you would invest  2,461  in Clear Secure on May 18, 2025 and sell it today you would earn a total of  892.00  from holding Clear Secure or generate 36.25% return on investment over 90 days.

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

Network 1 Technologies  vs.  Clear Secure

Network 1 Technologies

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Network 1 Technologies are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Network 1 reported solid returns over the last few months and may actually be approaching a breakup point.

Clear Secure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Clear Secure are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Clear Secure unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Network 1 and Clear Secure

The main advantage of trading using opposite Network 1 and Clear Secure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Network 1 position performs unexpectedly, Clear Secure 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 Clear Secure will offset losses from the drop in Clear Secure's long position.

The idea behind Network 1 Technologies and Clear Secure 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.