Correlation Between Netflix and Greenwood Hall
Can any of the company-specific risk be diversified away by investing in both Netflix and Greenwood Hall 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 Greenwood Hall into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Greenwood Hall, you can compare the effects of market volatilities on Netflix and Greenwood Hall 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 Greenwood Hall. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Greenwood Hall.
Diversification Opportunities for Netflix and Greenwood Hall
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netflix and Greenwood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Greenwood Hall in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greenwood Hall 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 Greenwood Hall. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greenwood Hall has no effect on the direction of Netflix i.e., Netflix and Greenwood Hall go up and down completely randomly.
Pair Corralation between Netflix and Greenwood Hall
If you would invest 75,551 in Netflix on September 3, 2024 and sell it today you would earn a total of 13,130 from holding Netflix or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Netflix vs. Greenwood Hall
Performance |
| Timeline |
| Netflix |
| Greenwood Hall |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Netflix and Greenwood Hall Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Greenwood Hall
The main advantage of trading using opposite Netflix and Greenwood Hall positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Greenwood Hall 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 Greenwood Hall will offset losses from the drop in Greenwood Hall's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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