Correlation Between ZOOZ Power and NETGEAR

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

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

Diversification Opportunities for ZOOZ Power and NETGEAR

0.14

Correlation Coefficient

ZOOZ Power  NETGEAR

Average diversification

The 3 months correlation between ZOOZ and NETGEAR is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding ZOOZ Power Ltd and NETGEAR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NETGEAR and ZOOZ Power 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 ZOOZ Power Ltd are associated (or correlated) with NETGEAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NETGEAR has no effect on the direction of ZOOZ Power i.e., ZOOZ Power and NETGEAR go up and down completely randomly.

Pair Corralation between ZOOZ Power and NETGEAR

Given the investment horizon of 90 days ZOOZ Power Ltd is expected to under-perform the NETGEAR. In addition to that, ZOOZ Power is 1.84 times more volatile than NETGEAR. It trades about -0.13 of its total potential returns per unit of risk. NETGEAR is currently generating about -0.05 per unit of volatility. If you would invest  2,671  in NETGEAR on December 19, 2024 and sell it today you would lose (285.00) from holding NETGEAR or give up 10.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

ZOOZ Power Ltd  vs.  NETGEAR

ZOOZ Power

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZOOZ Power Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

NETGEAR

Risk-Adjusted Performance

Very Weak

Over the last 90 days NETGEAR has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unsteady 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.

Pair Trading with ZOOZ Power and NETGEAR

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

The idea behind ZOOZ Power Ltd and NETGEAR 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.