Correlation Between Netflix and Qingdao Haier
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By analyzing existing cross correlation between Netflix and Qingdao Haier Biomedical, you can compare the effects of market volatilities on Netflix and Qingdao Haier 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 Qingdao Haier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Qingdao Haier.
Diversification Opportunities for Netflix and Qingdao Haier
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Netflix and Qingdao is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Qingdao Haier Biomedical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Haier Biomedical 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 Qingdao Haier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Haier Biomedical has no effect on the direction of Netflix i.e., Netflix and Qingdao Haier go up and down completely randomly.
Pair Corralation between Netflix and Qingdao Haier
Given the investment horizon of 90 days Netflix is expected to generate 0.51 times more return on investment than Qingdao Haier. However, Netflix is 1.97 times less risky than Qingdao Haier. It trades about 0.57 of its potential returns per unit of risk. Qingdao Haier Biomedical is currently generating about 0.13 per unit of risk. If you would invest 75,551 in Netflix on September 4, 2024 and sell it today you would earn a total of 14,223 from holding Netflix or generate 18.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Netflix vs. Qingdao Haier Biomedical
Performance |
| Timeline |
| Netflix |
| Qingdao Haier Biomedical |
Netflix and Qingdao Haier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Qingdao Haier
The main advantage of trading using opposite Netflix and Qingdao Haier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Qingdao Haier 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 Qingdao Haier will offset losses from the drop in Qingdao Haier's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
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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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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