Correlation Between Netflix and Shaanxi Beiyuan
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By analyzing existing cross correlation between Netflix and Shaanxi Beiyuan Chemical, you can compare the effects of market volatilities on Netflix and Shaanxi Beiyuan 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 Shaanxi Beiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Shaanxi Beiyuan.
Diversification Opportunities for Netflix and Shaanxi Beiyuan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Netflix and Shaanxi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Shaanxi Beiyuan Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Beiyuan Chemical 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 Shaanxi Beiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Beiyuan Chemical has no effect on the direction of Netflix i.e., Netflix and Shaanxi Beiyuan go up and down completely randomly.
Pair Corralation between Netflix and Shaanxi Beiyuan
Given the investment horizon of 90 days Netflix is expected to generate 1.67 times more return on investment than Shaanxi Beiyuan. However, Netflix is 1.67 times more volatile than Shaanxi Beiyuan Chemical. It trades about 0.12 of its potential returns per unit of risk. Shaanxi Beiyuan Chemical is currently generating about -0.01 per unit of risk. If you would invest 29,775 in Netflix on September 12, 2024 and sell it today you would earn a total of 61,560 from holding Netflix or generate 206.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.16% |
| Values | Daily Returns |
Netflix vs. Shaanxi Beiyuan Chemical
Performance |
| Timeline |
| Netflix |
| Shaanxi Beiyuan Chemical |
Netflix and Shaanxi Beiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Shaanxi Beiyuan
The main advantage of trading using opposite Netflix and Shaanxi Beiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Shaanxi Beiyuan 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 Shaanxi Beiyuan will offset losses from the drop in Shaanxi Beiyuan's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Shaanxi Beiyuan vs. HUAQIN TECHNOLOGY LTD | Shaanxi Beiyuan vs. Jinhe Biotechnology Co | Shaanxi Beiyuan vs. Shaanxi Energy Investment | Shaanxi Beiyuan vs. Zhejiang Construction Investment |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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