Correlation Between Netflix and Absa Multi
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By analyzing existing cross correlation between Netflix and Absa Multi Managed, you can compare the effects of market volatilities on Netflix and Absa Multi 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 Absa Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Absa Multi.
Diversification Opportunities for Netflix and Absa Multi
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Netflix and Absa is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Absa Multi Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absa Multi Managed 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 Absa Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absa Multi Managed has no effect on the direction of Netflix i.e., Netflix and Absa Multi go up and down completely randomly.
Pair Corralation between Netflix and Absa Multi
Given the investment horizon of 90 days Netflix is expected to generate 5.04 times more return on investment than Absa Multi. However, Netflix is 5.04 times more volatile than Absa Multi Managed. It trades about 0.12 of its potential returns per unit of risk. Absa Multi Managed is currently generating about 0.1 per unit of risk. If you would invest 29,496 in Netflix on September 13, 2024 and sell it today you would earn a total of 64,160 from holding Netflix or generate 217.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Netflix vs. Absa Multi Managed
Performance |
| Timeline |
| Netflix |
| Absa Multi Managed |
Netflix and Absa Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Absa Multi
The main advantage of trading using opposite Netflix and Absa Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Absa Multi 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 Absa Multi will offset losses from the drop in Absa Multi's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Absa Multi vs. Absa Multi managed Absolute | Absa Multi vs. Absa Prudential | Absa Multi vs. Absa Multi Managed | Absa Multi vs. Absa Multi Managed |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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