Correlation Between Netflix and Dook Media
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By analyzing existing cross correlation between Netflix and Dook Media Group, you can compare the effects of market volatilities on Netflix and Dook Media 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 Dook Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Dook Media.
Diversification Opportunities for Netflix and Dook Media
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Netflix and Dook is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Dook Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dook Media Group 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 Dook Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dook Media Group has no effect on the direction of Netflix i.e., Netflix and Dook Media go up and down completely randomly.
Pair Corralation between Netflix and Dook Media
Given the investment horizon of 90 days Netflix is expected to generate 0.5 times more return on investment than Dook Media. However, Netflix is 2.01 times less risky than Dook Media. It trades about 0.1 of its potential returns per unit of risk. Dook Media Group is currently generating about 0.03 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 | Significant |
| Accuracy | 96.36% |
| Values | Daily Returns |
Netflix vs. Dook Media Group
Performance |
| Timeline |
| Netflix |
| Dook Media Group |
Netflix and Dook Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Dook Media
The main advantage of trading using opposite Netflix and Dook Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Dook Media 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 Dook Media will offset losses from the drop in Dook Media's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Dook Media vs. Gansu Jiu Steel | Dook Media vs. Ming Yang Smart | Dook Media vs. Aba Chemicals Corp | Dook Media vs. Loctek Ergonomic Technology |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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