Correlation Between Netflix and Voya Retirement
Can any of the company-specific risk be diversified away by investing in both Netflix and Voya Retirement 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 Voya Retirement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Voya Retirement Moderate, you can compare the effects of market volatilities on Netflix and Voya Retirement 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 Voya Retirement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Voya Retirement.
Diversification Opportunities for Netflix and Voya Retirement
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Netflix and Voya is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Voya Retirement Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Retirement Moderate 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 Voya Retirement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Retirement Moderate has no effect on the direction of Netflix i.e., Netflix and Voya Retirement go up and down completely randomly.
Pair Corralation between Netflix and Voya Retirement
Given the investment horizon of 90 days Netflix is expected to generate 3.77 times more return on investment than Voya Retirement. However, Netflix is 3.77 times more volatile than Voya Retirement Moderate. It trades about 0.15 of its potential returns per unit of risk. Voya Retirement Moderate is currently generating about 0.12 per unit of risk. If you would invest 48,612 in Netflix on September 12, 2024 and sell it today you would earn a total of 42,723 from holding Netflix or generate 87.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Netflix vs. Voya Retirement Moderate
Performance |
| Timeline |
| Netflix |
| Voya Retirement Moderate |
Netflix and Voya Retirement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Voya Retirement
The main advantage of trading using opposite Netflix and Voya Retirement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Voya Retirement 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 Voya Retirement will offset losses from the drop in Voya Retirement's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Voya Retirement vs. Great West Loomis Sayles | Voya Retirement vs. Omni Small Cap Value | Voya Retirement vs. Royce Opportunity Fund | Voya Retirement vs. Heartland Value Plus |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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