Correlation Between Netflix and Great Portland
Can any of the company-specific risk be diversified away by investing in both Netflix and Great Portland 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 Great Portland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Great Portland Estates, you can compare the effects of market volatilities on Netflix and Great Portland 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 Great Portland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Great Portland.
Diversification Opportunities for Netflix and Great Portland
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netflix and Great is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Great Portland Estates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Portland Estates 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 Great Portland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Portland Estates has no effect on the direction of Netflix i.e., Netflix and Great Portland go up and down completely randomly.
Pair Corralation between Netflix and Great Portland
Given the investment horizon of 90 days Netflix is expected to generate 0.8 times more return on investment than Great Portland. However, Netflix is 1.25 times less risky than Great Portland. It trades about 0.12 of its potential returns per unit of risk. Great Portland Estates is currently generating about -0.02 per unit of risk. If you would invest 29,775 in Netflix on September 12, 2024 and sell it today you would earn a total of 61,560 from holding Netflix or generate 206.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.21% |
| Values | Daily Returns |
Netflix vs. Great Portland Estates
Performance |
| Timeline |
| Netflix |
| Great Portland Estates |
Netflix and Great Portland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Great Portland
The main advantage of trading using opposite Netflix and Great Portland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Great Portland 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 Great Portland will offset losses from the drop in Great Portland's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Great Portland vs. Office Properties Income | Great Portland vs. CITY OFFICE REIT | Great Portland vs. CREMECOMTRSBI DL 001 | Great Portland vs. Superior Plus Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |