Correlation Between Netflix and Aegon NV
Can any of the company-specific risk be diversified away by investing in both Netflix and Aegon NV 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 Aegon NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Aegon NV, you can compare the effects of market volatilities on Netflix and Aegon NV 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 Aegon NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Aegon NV.
Diversification Opportunities for Netflix and Aegon NV
Poor diversification
The 3 months correlation between Netflix and Aegon is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Aegon NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegon NV 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 Aegon NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegon NV has no effect on the direction of Netflix i.e., Netflix and Aegon NV go up and down completely randomly.
Pair Corralation between Netflix and Aegon NV
If you would invest 75,551 in Netflix on September 5, 2024 and sell it today you would earn a total of 15,555 from holding Netflix or generate 20.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Netflix vs. Aegon NV
Performance |
| Timeline |
| Netflix |
| Aegon NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Netflix and Aegon NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Aegon NV
The main advantage of trading using opposite Netflix and Aegon NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Aegon NV 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 Aegon NV will offset losses from the drop in Aegon NV's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Aegon NV vs. CECO Environmental Corp | Aegon NV vs. Omni Health | Aegon NV vs. Sonida Senior Living | Aegon NV vs. Franklin Credit Management |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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