Correlation Between Chicken Soup and Netflix
Can any of the company-specific risk be diversified away by investing in both Chicken Soup 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 Chicken Soup and Netflix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicken Soup For and Netflix, you can compare the effects of market volatilities on Chicken Soup 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 Chicken Soup with a short position of Netflix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicken Soup and Netflix.
Diversification Opportunities for Chicken Soup and Netflix
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chicken and Netflix is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Chicken Soup For and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and Chicken Soup 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 Chicken Soup For 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 Chicken Soup i.e., Chicken Soup and Netflix go up and down completely randomly.
Pair Corralation between Chicken Soup and Netflix
If you would invest 70,927 in Netflix on August 30, 2024 and sell it today you would earn a total of 16,807 from holding Netflix or generate 23.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Chicken Soup For vs. Netflix
Performance |
| Timeline |
| Chicken Soup For |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Netflix |
Chicken Soup and Netflix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chicken Soup and Netflix
The main advantage of trading using opposite Chicken Soup and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicken Soup 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.| Chicken Soup vs. LiveOne | Chicken Soup vs. Sinclair Broadcast Group | Chicken Soup vs. Fox Corp Class | Chicken Soup vs. Lions Gate Entertainment |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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