Correlation Between Netflix and Clockwise Capital

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Can any of the company-specific risk be diversified away by investing in both Netflix and Clockwise Capital 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 Clockwise Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Clockwise Capital, you can compare the effects of market volatilities on Netflix and Clockwise Capital 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 Clockwise Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Clockwise Capital.

Diversification Opportunities for Netflix and Clockwise Capital

-0.86
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Netflix and Clockwise is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Clockwise Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clockwise Capital 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 Clockwise Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clockwise Capital has no effect on the direction of Netflix i.e., Netflix and Clockwise Capital go up and down completely randomly.

Pair Corralation between Netflix and Clockwise Capital

If you would invest  2,351  in Clockwise Capital on December 1, 2025 and sell it today you would earn a total of  0.00  from holding Clockwise Capital or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy1.61%
ValuesDaily Returns

Netflix  vs.  Clockwise Capital

 Performance 
       Timeline  
Netflix 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Netflix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Etf's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the ETF investors.
Clockwise Capital 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Clockwise Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Clockwise Capital is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Netflix and Clockwise Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Netflix and Clockwise Capital

The main advantage of trading using opposite Netflix and Clockwise Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Clockwise Capital 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 Clockwise Capital will offset losses from the drop in Clockwise Capital's long position.
The idea behind Netflix and Clockwise Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.

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