Correlation Between Netflix and Celtic Plc
Can any of the company-specific risk be diversified away by investing in both Netflix and Celtic Plc 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 Celtic Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Celtic plc, you can compare the effects of market volatilities on Netflix and Celtic Plc 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 Celtic Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Celtic Plc.
Diversification Opportunities for Netflix and Celtic Plc
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Netflix and Celtic is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Celtic plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celtic plc 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 Celtic Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celtic plc has no effect on the direction of Netflix i.e., Netflix and Celtic Plc go up and down completely randomly.
Pair Corralation between Netflix and Celtic Plc
Given the investment horizon of 90 days Netflix is expected to generate 0.33 times more return on investment than Celtic Plc. However, Netflix is 3.07 times less risky than Celtic Plc. It trades about 0.67 of its potential returns per unit of risk. Celtic plc is currently generating about 0.1 per unit of risk. If you would invest 75,468 in Netflix on August 26, 2024 and sell it today you would earn a total of 14,311 from holding Netflix or generate 18.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix vs. Celtic plc
Performance |
| Timeline |
| Netflix |
| Celtic plc |
Netflix and Celtic Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Celtic Plc
The main advantage of trading using opposite Netflix and Celtic Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Celtic Plc 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 Celtic Plc will offset losses from the drop in Celtic Plc's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Celtic Plc vs. Guild Esports Plc | Celtic Plc vs. ZoomerMedia Limited | Celtic Plc vs. Network Media Group | Celtic Plc vs. OverActive Media Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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