Correlation Between Netflix and ENEOS Holdings
Can any of the company-specific risk be diversified away by investing in both Netflix and ENEOS Holdings 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 ENEOS Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and ENEOS Holdings, you can compare the effects of market volatilities on Netflix and ENEOS Holdings 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 ENEOS Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and ENEOS Holdings.
Diversification Opportunities for Netflix and ENEOS Holdings
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Netflix and ENEOS is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and ENEOS Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENEOS Holdings 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 ENEOS Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENEOS Holdings has no effect on the direction of Netflix i.e., Netflix and ENEOS Holdings go up and down completely randomly.
Pair Corralation between Netflix and ENEOS Holdings
Given the investment horizon of 90 days Netflix is expected to generate 0.87 times more return on investment than ENEOS Holdings. However, Netflix is 1.15 times less risky than ENEOS Holdings. It trades about 0.12 of its potential returns per unit of risk. ENEOS Holdings is currently generating about 0.05 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 | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.21% |
| Values | Daily Returns |
Netflix vs. ENEOS Holdings
Performance |
| Timeline |
| Netflix |
| ENEOS Holdings |
Netflix and ENEOS Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and ENEOS Holdings
The main advantage of trading using opposite Netflix and ENEOS Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, ENEOS Holdings 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 ENEOS Holdings will offset losses from the drop in ENEOS Holdings' long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| ENEOS Holdings vs. Superior Plus Corp | ENEOS Holdings vs. SIVERS SEMICONDUCTORS AB | ENEOS Holdings vs. Norsk Hydro ASA | ENEOS Holdings vs. Reliance Steel Aluminum |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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