Correlation Between Netflix and El Puerto
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By analyzing existing cross correlation between Netflix and El Puerto de, you can compare the effects of market volatilities on Netflix and El Puerto 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 Netflix with a short position of El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and El Puerto.
Diversification Opportunities for Netflix and El Puerto
Pay attention - limited upside
The 3 months correlation between Netflix and LIVEPOL1 is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de and Netflix 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 Netflix are associated (or correlated) with El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of Netflix i.e., Netflix and El Puerto go up and down completely randomly.
Pair Corralation between Netflix and El Puerto
Assuming the 90 days trading horizon Netflix is expected to generate 2.3 times more return on investment than El Puerto. However, Netflix is 2.3 times more volatile than El Puerto de. It trades about 0.42 of its potential returns per unit of risk. El Puerto de is currently generating about -0.22 per unit of risk. 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 | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix vs. El Puerto de
Performance |
| Timeline |
| Netflix |
| El Puerto de |
Netflix and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and El Puerto
The main advantage of trading using opposite Netflix and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto's long position.| Netflix vs. Prudential Financial | Netflix vs. Southwest Airlines | Netflix vs. United Airlines Holdings | Netflix vs. Grupo Sports World |
| El Puerto vs. UnitedHealth Group Incorporated | El Puerto vs. Ross Stores | El Puerto vs. Prudential Financial | El Puerto vs. Samsung Electronics Co |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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