Correlation Between Netflix and Acroud AB
Can any of the company-specific risk be diversified away by investing in both Netflix and Acroud AB at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Netflix and Acroud AB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Acroud AB, you can compare the effects of market volatilities on Netflix and Acroud AB 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 Acroud AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Acroud AB.
Diversification Opportunities for Netflix and Acroud AB
Excellent diversification
The 3 months correlation between Netflix and Acroud is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Acroud AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acroud AB 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 Acroud AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acroud AB has no effect on the direction of Netflix i.e., Netflix and Acroud AB go up and down completely randomly.
Pair Corralation between Netflix and Acroud AB
Given the investment horizon of 90 days Netflix is expected to generate 0.62 times more return on investment than Acroud AB. However, Netflix is 1.63 times less risky than Acroud AB. It trades about 0.25 of its potential returns per unit of risk. Acroud AB is currently generating about -0.19 per unit of risk. If you would invest 70,680 in Netflix on September 3, 2024 and sell it today you would earn a total of 18,001 from holding Netflix or generate 25.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Netflix vs. Acroud AB
Performance |
| Timeline |
| Netflix |
| Acroud AB |
Netflix and Acroud AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Acroud AB
The main advantage of trading using opposite Netflix and Acroud AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Acroud AB 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 Acroud AB will offset losses from the drop in Acroud AB's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Acroud AB vs. Kambi Group PLC | Acroud AB vs. Betsson AB | Acroud AB vs. Evolution AB | Acroud AB vs. Embracer Group AB |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |