Correlation Between DXC Technology and Netflix
Can any of the company-specific risk be diversified away by investing in both DXC Technology 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 DXC Technology and Netflix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DXC Technology and Netflix, you can compare the effects of market volatilities on DXC Technology 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 DXC Technology with a short position of Netflix. Check out your portfolio center. Please also check ongoing floating volatility patterns of DXC Technology and Netflix.
Diversification Opportunities for DXC Technology and Netflix
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DXC and Netflix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DXC Technology and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and DXC Technology 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 DXC Technology 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 DXC Technology i.e., DXC Technology and Netflix go up and down completely randomly.
Pair Corralation between DXC Technology and Netflix
If you would invest 1,750,000 in Netflix on September 19, 2024 and sell it today you would earn a total of 116,170 from holding Netflix or generate 6.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DXC Technology vs. Netflix
Performance |
| Timeline |
| DXC Technology |
| Netflix |
DXC Technology and Netflix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DXC Technology and Netflix
The main advantage of trading using opposite DXC Technology and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DXC Technology 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.| DXC Technology vs. Grupo Carso SAB | DXC Technology vs. Taiwan Semiconductor Manufacturing | DXC Technology vs. Verizon Communications | DXC Technology vs. Cognizant Technology Solutions |
| Netflix vs. Verizon Communications | Netflix vs. Capital One Financial | Netflix vs. DXC Technology | Netflix vs. Grupo Sports World |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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