Correlation Between Netflix and Byggmax Group
Can any of the company-specific risk be diversified away by investing in both Netflix and Byggmax Group 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 Byggmax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Byggmax Group AB, you can compare the effects of market volatilities on Netflix and Byggmax Group 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 Byggmax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Byggmax Group.
Diversification Opportunities for Netflix and Byggmax Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Netflix and Byggmax is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Byggmax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmax Group 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 Byggmax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmax Group AB has no effect on the direction of Netflix i.e., Netflix and Byggmax Group go up and down completely randomly.
Pair Corralation between Netflix and Byggmax Group
Given the investment horizon of 90 days Netflix is expected to generate 0.54 times more return on investment than Byggmax Group. However, Netflix is 1.84 times less risky than Byggmax Group. It trades about 0.57 of its potential returns per unit of risk. Byggmax Group AB is currently generating about -0.1 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 | Very Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Netflix vs. Byggmax Group AB
Performance |
Timeline |
Netflix |
Byggmax Group AB |
Netflix and Byggmax Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Netflix and Byggmax Group
The main advantage of trading using opposite Netflix and Byggmax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Byggmax Group 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 Byggmax Group will offset losses from the drop in Byggmax Group's long position.Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
Byggmax Group vs. GALENA MINING LTD | Byggmax Group vs. COMBA TELECOM SYST | Byggmax Group vs. SK TELECOM TDADR | Byggmax Group vs. GRIFFIN MINING LTD |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |