Correlation Between Apogee Opportunities and Netflix
Can any of the company-specific risk be diversified away by investing in both Apogee Opportunities and Netflix 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 Apogee Opportunities and Netflix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apogee Opportunities and Netflix, you can compare the effects of market volatilities on Apogee Opportunities and Netflix 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 Apogee Opportunities with a short position of Netflix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apogee Opportunities and Netflix.
Diversification Opportunities for Apogee Opportunities and Netflix
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Apogee and Netflix is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Apogee Opportunities and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and Apogee Opportunities 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 Apogee Opportunities are associated (or correlated) with Netflix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netflix has no effect on the direction of Apogee Opportunities i.e., Apogee Opportunities and Netflix go up and down completely randomly.
Pair Corralation between Apogee Opportunities and Netflix
Considering the 90-day investment horizon Apogee Opportunities is expected to generate 4.06 times more return on investment than Netflix. However, Apogee Opportunities is 4.06 times more volatile than Netflix. It trades about 0.08 of its potential returns per unit of risk. Netflix is currently generating about 0.11 per unit of risk. If you would invest 95.00 in Apogee Opportunities on August 24, 2024 and sell it today you would earn a total of 85.00 from holding Apogee Opportunities or generate 89.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 31.92% |
| Values | Daily Returns |
Apogee Opportunities vs. Netflix
Performance |
| Timeline |
| Apogee Opportunities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Netflix |
Apogee Opportunities and Netflix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apogee Opportunities and Netflix
The main advantage of trading using opposite Apogee Opportunities and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apogee Opportunities position performs unexpectedly, Netflix 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 Netflix will offset losses from the drop in Netflix's long position.| Apogee Opportunities vs. Netflix | Apogee Opportunities vs. Walt Disney | Apogee Opportunities vs. Roku Inc | Apogee Opportunities vs. Paramount Global Class |
| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
Check out your portfolio center.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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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