Correlation Between Netflix and Cambi ASA
Can any of the company-specific risk be diversified away by investing in both Netflix and Cambi ASA 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 Cambi ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Cambi ASA, you can compare the effects of market volatilities on Netflix and Cambi ASA 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 Cambi ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Cambi ASA.
Diversification Opportunities for Netflix and Cambi ASA
Significant diversification
The 3 months correlation between Netflix and Cambi is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Cambi ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cambi ASA 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 Cambi ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cambi ASA has no effect on the direction of Netflix i.e., Netflix and Cambi ASA go up and down completely randomly.
Pair Corralation between Netflix and Cambi ASA
Given the investment horizon of 90 days Netflix is expected to generate 0.75 times more return on investment than Cambi ASA. However, Netflix is 1.33 times less risky than Cambi ASA. It trades about 0.15 of its potential returns per unit of risk. Cambi ASA is currently generating about 0.02 per unit of risk. If you would invest 48,612 in Netflix on September 12, 2024 and sell it today you would earn a total of 42,723 from holding Netflix or generate 87.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Netflix vs. Cambi ASA
Performance |
| Timeline |
| Netflix |
| Cambi ASA |
Netflix and Cambi ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Cambi ASA
The main advantage of trading using opposite Netflix and Cambi ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Cambi ASA 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 Cambi ASA will offset losses from the drop in Cambi ASA's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Cambi ASA vs. Aker Horizons AS | Cambi ASA vs. Hexagon Purus As | Cambi ASA vs. Huddly AS | Cambi ASA vs. Everfuel AS |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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