Correlation Between Netflix and UBS
Can any of the company-specific risk be diversified away by investing in both Netflix and UBS 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 UBS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and UBS, you can compare the effects of market volatilities on Netflix and UBS 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 UBS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and UBS.
Diversification Opportunities for Netflix and UBS
Pay attention - limited upside
The 3 months correlation between Netflix and UBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and UBS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UBS 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 UBS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UBS has no effect on the direction of Netflix i.e., Netflix and UBS go up and down completely randomly.
Pair Corralation between Netflix and UBS
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Netflix vs. UBS
Performance |
| Timeline |
| Netflix |
| UBS |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Netflix and UBS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and UBS
The main advantage of trading using opposite Netflix and UBS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, UBS 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 UBS will offset losses from the drop in UBS's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| UBS vs. Global X Funds | UBS vs. Formidable Fortress ETF | UBS vs. JPMorgan Active Value | UBS vs. Global X Funds |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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