Correlation Between Netflix and Banco Santander
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By analyzing existing cross correlation between Netflix and Banco Santander SA, you can compare the effects of market volatilities on Netflix and Banco Santander 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 Banco Santander. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Banco Santander.
Diversification Opportunities for Netflix and Banco Santander
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Netflix and Banco is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Banco Santander SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco Santander SA 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 Banco Santander. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco Santander SA has no effect on the direction of Netflix i.e., Netflix and Banco Santander go up and down completely randomly.
Pair Corralation between Netflix and Banco Santander
Given the investment horizon of 90 days Netflix is expected to generate 0.83 times more return on investment than Banco Santander. However, Netflix is 1.2 times less risky than Banco Santander. It trades about 0.61 of its potential returns per unit of risk. Banco Santander SA is currently generating about -0.09 per unit of risk. 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 | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Netflix vs. Banco Santander SA
Performance |
| Timeline |
| Netflix |
| Banco Santander SA |
Netflix and Banco Santander Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Banco Santander
The main advantage of trading using opposite Netflix and Banco Santander positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Banco Santander 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 Banco Santander will offset losses from the drop in Banco Santander's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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