Correlation Between Megacable Holdings and Netflix
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By analyzing existing cross correlation between Megacable Holdings S and Netflix, you can compare the effects of market volatilities on Megacable Holdings 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 Megacable Holdings with a short position of Netflix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Megacable Holdings and Netflix.
Diversification Opportunities for Megacable Holdings and Netflix
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Megacable and Netflix is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Megacable Holdings S and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and Megacable Holdings 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 Megacable Holdings S 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 Megacable Holdings i.e., Megacable Holdings and Netflix go up and down completely randomly.
Pair Corralation between Megacable Holdings and Netflix
Assuming the 90 days trading horizon Megacable Holdings S is expected to under-perform the Netflix. In addition to that, Megacable Holdings is 1.11 times more volatile than Netflix. It trades about -0.2 of its total potential returns per unit of risk. Netflix is currently generating about 0.62 per unit of volatility. If you would invest 1,479,999 in Netflix on August 24, 2024 and sell it today you would earn a total of 352,607 from holding Netflix or generate 23.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Megacable Holdings S vs. Netflix
Performance |
| Timeline |
| Megacable Holdings |
| Netflix |
Megacable Holdings and Netflix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Megacable Holdings and Netflix
The main advantage of trading using opposite Megacable Holdings and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Megacable Holdings 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.| Megacable Holdings vs. Promotora y Operadora | Megacable Holdings vs. Grupo Aeroportuario del | Megacable Holdings vs. Grupo Aeroportuario del | Megacable Holdings vs. Grupo Televisa SAB |
| Netflix vs. The Walt Disney | Netflix vs. Megacable Holdings S | Netflix vs. The Select Sector | Netflix vs. Promotora y Operadora |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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