Correlation Between Netflix and Gigante Salmon
Can any of the company-specific risk be diversified away by investing in both Netflix and Gigante Salmon 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 Gigante Salmon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Gigante Salmon AS, you can compare the effects of market volatilities on Netflix and Gigante Salmon 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 Gigante Salmon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Gigante Salmon.
Diversification Opportunities for Netflix and Gigante Salmon
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Netflix and Gigante is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Gigante Salmon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gigante Salmon AS 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 Gigante Salmon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gigante Salmon AS has no effect on the direction of Netflix i.e., Netflix and Gigante Salmon go up and down completely randomly.
Pair Corralation between Netflix and Gigante Salmon
Given the investment horizon of 90 days Netflix is expected to generate 0.52 times more return on investment than Gigante Salmon. However, Netflix is 1.91 times less risky than Gigante Salmon. It trades about 0.45 of its potential returns per unit of risk. Gigante Salmon AS is currently generating about -0.03 per unit of risk. If you would invest 80,544 in Netflix on September 12, 2024 and sell it today you would earn a total of 13,486 from holding Netflix or generate 16.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Netflix vs. Gigante Salmon AS
Performance |
| Timeline |
| Netflix |
| Gigante Salmon AS |
Netflix and Gigante Salmon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Gigante Salmon
The main advantage of trading using opposite Netflix and Gigante Salmon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Gigante Salmon 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 Gigante Salmon will offset losses from the drop in Gigante Salmon's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Gigante Salmon vs. Andfjord Salmon AS | Gigante Salmon vs. Salmon Evolution Holding | Gigante Salmon vs. Biofish Holding AS | Gigante Salmon vs. Nordic Aqua Partners |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |