Correlation Between Netflix and ON Semiconductor
Can any of the company-specific risk be diversified away by investing in both Netflix and ON Semiconductor 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 ON Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and ON Semiconductor, you can compare the effects of market volatilities on Netflix and ON Semiconductor 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 ON Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and ON Semiconductor.
Diversification Opportunities for Netflix and ON Semiconductor
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netflix and O2NS34 is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and ON Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ON Semiconductor 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 ON Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ON Semiconductor has no effect on the direction of Netflix i.e., Netflix and ON Semiconductor go up and down completely randomly.
Pair Corralation between Netflix and ON Semiconductor
Given the investment horizon of 90 days Netflix is expected to under-perform the ON Semiconductor. But the etf apears to be less risky and, when comparing its historical volatility, Netflix is 1.37 times less risky than ON Semiconductor. The etf trades about -0.27 of its potential returns per unit of risk. The ON Semiconductor is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 3,230 in ON Semiconductor on November 9, 2025 and sell it today you would earn a total of 887.00 from holding ON Semiconductor or generate 27.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.36% |
| Values | Daily Returns |
Netflix vs. ON Semiconductor
Performance |
| Timeline |
| Netflix |
| ON Semiconductor |
Netflix and ON Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and ON Semiconductor
The main advantage of trading using opposite Netflix and ON Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, ON Semiconductor 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 ON Semiconductor will offset losses from the drop in ON Semiconductor's long position.| Netflix vs. Walt Disney | Netflix vs. Warner Bros Discovery | Netflix vs. Imax Corp | Netflix vs. Warner Music Group |
| ON Semiconductor vs. Taiwan Semiconductor Manufacturing | ON Semiconductor vs. Apple Inc | ON Semiconductor vs. Alibaba Group Holding | ON Semiconductor vs. Microsoft |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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