Correlation Between Netflix and MCB GROUP
Can any of the company-specific risk be diversified away by investing in both Netflix and MCB GROUP 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 MCB GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and MCB GROUP LIMITED, you can compare the effects of market volatilities on Netflix and MCB GROUP 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 MCB GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and MCB GROUP.
Diversification Opportunities for Netflix and MCB GROUP
Modest diversification
The 3 months correlation between Netflix and MCB is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and MCB GROUP LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCB GROUP LIMITED 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 MCB GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCB GROUP LIMITED has no effect on the direction of Netflix i.e., Netflix and MCB GROUP go up and down completely randomly.
Pair Corralation between Netflix and MCB GROUP
Given the investment horizon of 90 days Netflix is expected to generate 3.06 times more return on investment than MCB GROUP. However, Netflix is 3.06 times more volatile than MCB GROUP LIMITED. It trades about 0.12 of its potential returns per unit of risk. MCB GROUP LIMITED is currently generating about 0.11 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 | 98.79% |
| Values | Daily Returns |
Netflix vs. MCB GROUP LIMITED
Performance |
| Timeline |
| Netflix |
| MCB GROUP LIMITED |
Netflix and MCB GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and MCB GROUP
The main advantage of trading using opposite Netflix and MCB GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, MCB GROUP 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 MCB GROUP will offset losses from the drop in MCB GROUP's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| MCB GROUP vs. UNITED INVESTMENTS LTD | MCB GROUP vs. PHOENIX BEVERAGES LTD | MCB GROUP vs. QUALITY BEVERAGES LTD | MCB GROUP vs. FINCORP INVESTMENT LTD |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |