Correlation Between HAGA SA and Netflix
Can any of the company-specific risk be diversified away by investing in both HAGA SA 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 HAGA SA and Netflix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HAGA SA Indstria and Netflix, you can compare the effects of market volatilities on HAGA SA 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 HAGA SA with a short position of Netflix. Check out your portfolio center. Please also check ongoing floating volatility patterns of HAGA SA and Netflix.
Diversification Opportunities for HAGA SA and Netflix
Very poor diversification
The 3 months correlation between HAGA and Netflix is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding HAGA SA Indstria and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and HAGA SA 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 HAGA SA Indstria 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 HAGA SA i.e., HAGA SA and Netflix go up and down completely randomly.
Pair Corralation between HAGA SA and Netflix
Assuming the 90 days trading horizon HAGA SA is expected to generate 135.9 times less return on investment than Netflix. But when comparing it to its historical volatility, HAGA SA Indstria is 1.47 times less risky than Netflix. It trades about 0.01 of its potential returns per unit of risk. Netflix is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest 8,526 in Netflix on August 28, 2024 and sell it today you would earn a total of 1,665 from holding Netflix or generate 19.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HAGA SA Indstria vs. Netflix
Performance |
| Timeline |
| HAGA SA Indstria |
| Netflix |
HAGA SA and Netflix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HAGA SA and Netflix
The main advantage of trading using opposite HAGA SA and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HAGA SA 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.| HAGA SA vs. Fras le SA | HAGA SA vs. Indstrias Romi SA | HAGA SA vs. Clave Indices De | HAGA SA vs. BTG Pactual Logstica |
| Netflix vs. Energisa SA | Netflix vs. BTG Pactual Logstica | Netflix vs. Plano Plano Desenvolvimento | Netflix vs. Companhia Habitasul de |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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