Correlation Between Netflix and Hangzhou Minsheng
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By analyzing existing cross correlation between Netflix and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Netflix and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Hangzhou Minsheng.
Diversification Opportunities for Netflix and Hangzhou Minsheng
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Netflix and Hangzhou is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Netflix i.e., Netflix and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Netflix and Hangzhou Minsheng
Given the investment horizon of 90 days Netflix is expected to generate 0.59 times more return on investment than Hangzhou Minsheng. However, Netflix is 1.71 times less risky than Hangzhou Minsheng. It trades about 0.16 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.02 per unit of risk. If you would invest 37,332 in Netflix on September 4, 2024 and sell it today you would earn a total of 52,442 from holding Netflix or generate 140.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.9% |
| Values | Daily Returns |
Netflix vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Netflix |
| Hangzhou Minsheng |
Netflix and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Hangzhou Minsheng
The main advantage of trading using opposite Netflix and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Hangzhou Minsheng vs. Chengdu Xingrong Investment | Hangzhou Minsheng vs. Nexchip Semiconductor Corp | Hangzhou Minsheng vs. Zoje Resources Investment | Hangzhou Minsheng vs. Guangdong Marubi Biotechnology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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