Correlation Between Hoteles City and Netflix
Can any of the company-specific risk be diversified away by investing in both Hoteles City 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 Hoteles City and Netflix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hoteles City Express and Netflix, you can compare the effects of market volatilities on Hoteles City 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 Hoteles City with a short position of Netflix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hoteles City and Netflix.
Diversification Opportunities for Hoteles City and Netflix
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hoteles and Netflix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hoteles City Express and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and Hoteles City 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 Hoteles City Express 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 Hoteles City i.e., Hoteles City and Netflix go up and down completely randomly.
Pair Corralation between Hoteles City and Netflix
Assuming the 90 days trading horizon Hoteles City Express is expected to under-perform the Netflix. But the stock apears to be less risky and, when comparing its historical volatility, Hoteles City Express is 1.03 times less risky than Netflix. The stock trades about -0.02 of its potential returns per unit of risk. The Netflix is currently generating about 0.42 of returns per unit of risk over similar time horizon. If you would invest 1,514,492 in Netflix on September 1, 2024 and sell it today you would earn a total of 292,508 from holding Netflix or generate 19.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hoteles City Express vs. Netflix
Performance |
| Timeline |
| Hoteles City Express |
| Netflix |
Hoteles City and Netflix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hoteles City and Netflix
The main advantage of trading using opposite Hoteles City and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hoteles City 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.| Hoteles City vs. Controladora Vuela Compaa | Hoteles City vs. Alsea SAB de | Hoteles City vs. Nemak S A | Hoteles City vs. Grupo Comercial Chedraui |
| Netflix vs. Prudential Financial | Netflix vs. Southwest Airlines | Netflix vs. United Airlines Holdings | 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |