Correlation Between Netflix and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Netflix and IHH Healthcare 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 IHH Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and IHH Healthcare Berhad, you can compare the effects of market volatilities on Netflix and IHH Healthcare 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 IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and IHH Healthcare.
Diversification Opportunities for Netflix and IHH Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netflix and IHH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and IHH Healthcare Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Berhad 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 IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Berhad has no effect on the direction of Netflix i.e., Netflix and IHH Healthcare go up and down completely randomly.
Pair Corralation between Netflix and IHH Healthcare
Given the investment horizon of 90 days Netflix is expected to generate 1.37 times more return on investment than IHH Healthcare. However, Netflix is 1.37 times more volatile than IHH Healthcare Berhad. It trades about 0.12 of its potential returns per unit of risk. IHH Healthcare Berhad is currently generating about -0.01 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 | Flat |
| Strength | Insignificant |
| Accuracy | 70.51% |
| Values | Daily Returns |
Netflix vs. IHH Healthcare Berhad
Performance |
| Timeline |
| Netflix |
| IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Netflix and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and IHH Healthcare
The main advantage of trading using opposite Netflix and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, IHH Healthcare 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 IHH Healthcare will offset losses from the drop in IHH Healthcare's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| IHH Healthcare vs. RCS MediaGroup SpA | IHH Healthcare vs. Emerson Radio | IHH Healthcare vs. Mediag3 | IHH Healthcare vs. Xponential Fitness |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| 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 | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |