Correlation Between Netflix and Coronation Financial
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By analyzing existing cross correlation between Netflix and Coronation Financial, you can compare the effects of market volatilities on Netflix and Coronation Financial 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 Coronation Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Coronation Financial.
Diversification Opportunities for Netflix and Coronation Financial
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Netflix and Coronation is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Coronation Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coronation Financial 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 Coronation Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coronation Financial has no effect on the direction of Netflix i.e., Netflix and Coronation Financial go up and down completely randomly.
Pair Corralation between Netflix and Coronation Financial
Given the investment horizon of 90 days Netflix is expected to generate 1.94 times more return on investment than Coronation Financial. However, Netflix is 1.94 times more volatile than Coronation Financial. It trades about 0.1 of its potential returns per unit of risk. Coronation Financial is currently generating about 0.06 per unit of risk. If you would invest 32,034 in Netflix on September 3, 2024 and sell it today you would earn a total of 56,647 from holding Netflix or generate 176.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.99% |
| Values | Daily Returns |
Netflix vs. Coronation Financial
Performance |
| Timeline |
| Netflix |
| Coronation Financial |
Netflix and Coronation Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Coronation Financial
The main advantage of trading using opposite Netflix and Coronation Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Coronation Financial 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 Coronation Financial will offset losses from the drop in Coronation Financial's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Coronation Financial vs. Coronation Balanced Plus | Coronation Financial vs. Coronation Industrial | Coronation Financial vs. Coronation Capital Plus | Coronation Financial vs. Coronation Global Equity |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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