Correlation Between Netflix and Xinjiang Zhongtai
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By analyzing existing cross correlation between Netflix and Xinjiang Zhongtai Chemical, you can compare the effects of market volatilities on Netflix and Xinjiang Zhongtai 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 Xinjiang Zhongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Xinjiang Zhongtai.
Diversification Opportunities for Netflix and Xinjiang Zhongtai
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Netflix and Xinjiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Xinjiang Zhongtai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Zhongtai 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 Xinjiang Zhongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Zhongtai has no effect on the direction of Netflix i.e., Netflix and Xinjiang Zhongtai go up and down completely randomly.
Pair Corralation between Netflix and Xinjiang Zhongtai
Given the investment horizon of 90 days Netflix is expected to generate 0.62 times more return on investment than Xinjiang Zhongtai. However, Netflix is 1.62 times less risky than Xinjiang Zhongtai. It trades about 0.58 of its potential returns per unit of risk. Xinjiang Zhongtai Chemical is currently generating about 0.28 per unit of risk. If you would invest 75,551 in Netflix on September 5, 2024 and sell it today you would earn a total of 14,666 from holding Netflix or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Netflix vs. Xinjiang Zhongtai Chemical
Performance |
| Timeline |
| Netflix |
| Xinjiang Zhongtai |
Netflix and Xinjiang Zhongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Xinjiang Zhongtai
The main advantage of trading using opposite Netflix and Xinjiang Zhongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Xinjiang Zhongtai 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 Xinjiang Zhongtai will offset losses from the drop in Xinjiang Zhongtai's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Xinjiang Zhongtai vs. Zijin Mining Group | Xinjiang Zhongtai vs. Wanhua Chemical Group | Xinjiang Zhongtai vs. Baoshan Iron Steel | Xinjiang Zhongtai vs. Shandong Gold Mining |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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