Correlation Between Netflix and OPERADORA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Netflix and OPERADORA 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 Netflix and OPERADORA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and OPERADORA DE SITES, you can compare the effects of market volatilities on Netflix and OPERADORA 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 OPERADORA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and OPERADORA.

Diversification Opportunities for Netflix and OPERADORA

-0.56
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Netflix and OPERADORA is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and OPERADORA DE SITES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPERADORA DE SITES 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 OPERADORA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPERADORA DE SITES has no effect on the direction of Netflix i.e., Netflix and OPERADORA go up and down completely randomly.

Pair Corralation between Netflix and OPERADORA

Assuming the 90 days trading horizon Netflix is expected to generate 1.14 times more return on investment than OPERADORA. However, Netflix is 1.14 times more volatile than OPERADORA DE SITES. It trades about 0.42 of its potential returns per unit of risk. OPERADORA DE SITES is currently generating about -0.67 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 Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy95.45%
ValuesDaily Returns

Netflix  vs.  OPERADORA DE SITES

 Performance 
       Timeline  
Netflix 

Risk-Adjusted Performance

16 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Netflix are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Netflix showed solid returns over the last few months and may actually be approaching a breakup point.
OPERADORA DE SITES 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days OPERADORA DE SITES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Netflix and OPERADORA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Netflix and OPERADORA

The main advantage of trading using opposite Netflix and OPERADORA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, OPERADORA 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 OPERADORA will offset losses from the drop in OPERADORA's long position.
Netflix vs. Prudential Financial
Netflix vs. Southwest Airlines
Netflix vs. United Airlines Holdings
Netflix vs. Grupo Sports World
The idea behind Netflix and OPERADORA DE SITES pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
OPERADORA vs. Promotora y Operadora
OPERADORA vs. The Select Sector
OPERADORA vs. iShares Global Timber
OPERADORA vs. SPDR Series Trust
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY