Correlation Between Netflix and MaxCyte
Can any of the company-specific risk be diversified away by investing in both Netflix and MaxCyte 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 MaxCyte into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and MaxCyte, you can compare the effects of market volatilities on Netflix and MaxCyte 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 MaxCyte. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and MaxCyte.
Diversification Opportunities for Netflix and MaxCyte
Pay attention - limited upside
The 3 months correlation between Netflix and MaxCyte is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and MaxCyte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MaxCyte 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 MaxCyte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MaxCyte has no effect on the direction of Netflix i.e., Netflix and MaxCyte go up and down completely randomly.
Pair Corralation between Netflix and MaxCyte
Given the investment horizon of 90 days Netflix is expected to generate 0.52 times more return on investment than MaxCyte. However, Netflix is 1.91 times less risky than MaxCyte. It trades about 0.15 of its potential returns per unit of risk. MaxCyte is currently generating about -0.02 per unit of risk. If you would invest 45,200 in Netflix on September 2, 2024 and sell it today you would earn a total of 43,481 from holding Netflix or generate 96.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix vs. MaxCyte
Performance |
| Timeline |
| Netflix |
| MaxCyte |
Netflix and MaxCyte Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and MaxCyte
The main advantage of trading using opposite Netflix and MaxCyte positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, MaxCyte 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 MaxCyte will offset losses from the drop in MaxCyte's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| MaxCyte vs. Sight Sciences | MaxCyte vs. CVRx Inc | MaxCyte vs. Neuropace | MaxCyte vs. Rapid Micro Biosystems |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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