Correlation Between Netflix and IQ Candriam
Can any of the company-specific risk be diversified away by investing in both Netflix and IQ Candriam 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 IQ Candriam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and IQ Candriam ESG, you can compare the effects of market volatilities on Netflix and IQ Candriam 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 IQ Candriam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and IQ Candriam.
Diversification Opportunities for Netflix and IQ Candriam
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Netflix and IQSU is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and IQ Candriam ESG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ Candriam ESG 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 IQ Candriam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ Candriam ESG has no effect on the direction of Netflix i.e., Netflix and IQ Candriam go up and down completely randomly.
Pair Corralation between Netflix and IQ Candriam
Given the investment horizon of 90 days Netflix is expected to generate 3.05 times more return on investment than IQ Candriam. However, Netflix is 3.05 times more volatile than IQ Candriam ESG. It trades about 0.45 of its potential returns per unit of risk. IQ Candriam ESG is currently generating about 0.19 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix vs. IQ Candriam ESG
Performance |
| Timeline |
| Netflix |
| IQ Candriam ESG |
Netflix and IQ Candriam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and IQ Candriam
The main advantage of trading using opposite Netflix and IQ Candriam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, IQ Candriam 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 IQ Candriam will offset losses from the drop in IQ Candriam's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| IQ Candriam vs. IQ Candriam ESG | IQ Candriam vs. Xtrackers MSCI USA | IQ Candriam vs. Xtrackers SP 500 | IQ Candriam vs. Nuveen ESG Large Cap |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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