Correlation Between Netflix and IShares Core
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By analyzing existing cross correlation between Netflix and iShares Core SP, you can compare the effects of market volatilities on Netflix and IShares Core 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 IShares Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and IShares Core.
Diversification Opportunities for Netflix and IShares Core
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Netflix and IShares is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and iShares Core SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Core SP 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 IShares Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Core SP has no effect on the direction of Netflix i.e., Netflix and IShares Core go up and down completely randomly.
Pair Corralation between Netflix and IShares Core
Given the investment horizon of 90 days Netflix is expected to generate 1.86 times more return on investment than IShares Core. However, Netflix is 1.86 times more volatile than iShares Core SP. It trades about 0.58 of its potential returns per unit of risk. iShares Core SP is currently generating about 0.15 per unit of risk. If you would invest 75,551 in Netflix on September 5, 2024 and sell it today you would earn a total of 14,666 from holding Netflix or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Netflix vs. iShares Core SP
Performance |
| Timeline |
| Netflix |
| iShares Core SP |
Netflix and IShares Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and IShares Core
The main advantage of trading using opposite Netflix and IShares Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, IShares Core 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 IShares Core will offset losses from the drop in IShares Core's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| IShares Core vs. iShares SP 500 | IShares Core vs. iShares MSCI ACWI | IShares Core vs. iShares NASDAQ 100 | IShares Core vs. iShares Healthcare Innovation |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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