Correlation Between Netflix and Capital Management
Can any of the company-specific risk be diversified away by investing in both Netflix and Capital Management 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 Capital Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Capital Management Small Cap, you can compare the effects of market volatilities on Netflix and Capital Management 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 Capital Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Capital Management.
Diversification Opportunities for Netflix and Capital Management
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netflix and Capital is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Capital Management Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Management 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 Capital Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Management has no effect on the direction of Netflix i.e., Netflix and Capital Management go up and down completely randomly.
Pair Corralation between Netflix and Capital Management
If you would invest 89,017 in Netflix on January 12, 2025 and sell it today you would earn a total of 2,812 from holding Netflix or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Netflix vs. Capital Management Small Cap
Performance |
| Timeline |
| Netflix |
| Capital Management |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Netflix and Capital Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Capital Management
The main advantage of trading using opposite Netflix and Capital Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Capital Management 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 Capital Management will offset losses from the drop in Capital Management's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Capital Management vs. Inverse High Yield | Capital Management vs. Alpine High Yield | Capital Management vs. Access Flex High | Capital Management vs. Ab High Income |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |