Correlation Between Netflix and ZW Data
Can any of the company-specific risk be diversified away by investing in both Netflix and ZW Data 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 ZW Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and ZW Data Action, you can compare the effects of market volatilities on Netflix and ZW Data 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 ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and ZW Data.
Diversification Opportunities for Netflix and ZW Data
Very poor diversification
The 3 months correlation between Netflix and CNET is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action 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 ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of Netflix i.e., Netflix and ZW Data go up and down completely randomly.
Pair Corralation between Netflix and ZW Data
Given the investment horizon of 90 days Netflix is expected to generate 0.34 times more return on investment than ZW Data. However, Netflix is 2.96 times less risky than ZW Data. It trades about -0.29 of its potential returns per unit of risk. ZW Data Action is currently generating about -0.17 per unit of risk. If you would invest 11,201 in Netflix on November 8, 2025 and sell it today you would lose (3,114) from holding Netflix or give up 27.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix vs. ZW Data Action
Performance |
| Timeline |
| Netflix |
| ZW Data Action |
Netflix and ZW Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and ZW Data
The main advantage of trading using opposite Netflix and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.| Netflix vs. Walt Disney | Netflix vs. Warner Bros Discovery | Netflix vs. Imax Corp | Netflix vs. Warner Music Group |
| ZW Data vs. Baosheng Media Group | ZW Data vs. Cheetah Mobile | ZW Data vs. Onfolio Holdings | ZW Data vs. Star Fashion Culture |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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