Correlation Between Netflix and Futu Holdings
Can any of the company-specific risk be diversified away by investing in both Netflix and Futu Holdings 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 Futu Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Futu Holdings Limited, you can compare the effects of market volatilities on Netflix and Futu Holdings 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 Futu Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Futu Holdings.
Diversification Opportunities for Netflix and Futu Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netflix and Futu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Futu Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futu Holdings Limited 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 Futu Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futu Holdings Limited has no effect on the direction of Netflix i.e., Netflix and Futu Holdings go up and down completely randomly.
Pair Corralation between Netflix and Futu Holdings
If you would invest 68,680 in Netflix on September 12, 2024 and sell it today you would earn a total of 22,655 from holding Netflix or generate 32.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Netflix vs. Futu Holdings Limited
Performance |
| Timeline |
| Netflix |
| Futu Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Netflix and Futu Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Futu Holdings
The main advantage of trading using opposite Netflix and Futu Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Futu Holdings 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 Futu Holdings will offset losses from the drop in Futu Holdings' long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Futu Holdings vs. Fast Retailing Co | Futu Holdings vs. Mangazeya Mining | Futu Holdings vs. Meiwu Technology Co | Futu Holdings vs. Lion One Metals |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |