Correlation Between Netflix and Changzhou Xingyu
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By analyzing existing cross correlation between Netflix and Changzhou Xingyu Automotive, you can compare the effects of market volatilities on Netflix and Changzhou Xingyu 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 Changzhou Xingyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Changzhou Xingyu.
Diversification Opportunities for Netflix and Changzhou Xingyu
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Netflix and Changzhou is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Changzhou Xingyu Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Xingyu Aut 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 Changzhou Xingyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Xingyu Aut has no effect on the direction of Netflix i.e., Netflix and Changzhou Xingyu go up and down completely randomly.
Pair Corralation between Netflix and Changzhou Xingyu
Given the investment horizon of 90 days Netflix is expected to generate 0.71 times more return on investment than Changzhou Xingyu. However, Netflix is 1.42 times less risky than Changzhou Xingyu. It trades about 0.41 of its potential returns per unit of risk. Changzhou Xingyu Automotive is currently generating about -0.09 per unit of risk. If you would invest 81,950 in Netflix on September 13, 2024 and sell it today you would earn a total of 11,706 from holding Netflix or generate 14.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Netflix vs. Changzhou Xingyu Automotive
Performance |
| Timeline |
| Netflix |
| Changzhou Xingyu Aut |
Netflix and Changzhou Xingyu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Changzhou Xingyu
The main advantage of trading using opposite Netflix and Changzhou Xingyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Changzhou Xingyu 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 Changzhou Xingyu will offset losses from the drop in Changzhou Xingyu's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Changzhou Xingyu vs. StarPower Semiconductor | Changzhou Xingyu vs. Ye Chiu Metal | Changzhou Xingyu vs. Union Semiconductor Co | Changzhou Xingyu vs. Juneyao Airlines |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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