Correlation Between Netflix and Kurita Water
Can any of the company-specific risk be diversified away by investing in both Netflix and Kurita Water 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 Kurita Water into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Kurita Water Industries, you can compare the effects of market volatilities on Netflix and Kurita Water 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 Kurita Water. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Kurita Water.
Diversification Opportunities for Netflix and Kurita Water
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netflix and Kurita is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Kurita Water Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurita Water Industries 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 Kurita Water. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurita Water Industries has no effect on the direction of Netflix i.e., Netflix and Kurita Water go up and down completely randomly.
Pair Corralation between Netflix and Kurita Water
Given the investment horizon of 90 days Netflix is expected to generate 1.0 times more return on investment than Kurita Water. However, Netflix is 1.0 times more volatile than Kurita Water Industries. It trades about 0.53 of its potential returns per unit of risk. Kurita Water Industries is currently generating about 0.1 per unit of risk. If you would invest 75,603 in Netflix on September 1, 2024 and sell it today you would earn a total of 13,078 from holding Netflix or generate 17.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix vs. Kurita Water Industries
Performance |
| Timeline |
| Netflix |
| Kurita Water Industries |
Netflix and Kurita Water Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Kurita Water
The main advantage of trading using opposite Netflix and Kurita Water positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Kurita Water 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 Kurita Water will offset losses from the drop in Kurita Water's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Kurita Water vs. Eestech | Kurita Water vs. Bion Environmental Technologies | Kurita Water vs. TOMI Environmental Solutions |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |