Correlation Between Netflix and Pfizer
Can any of the company-specific risk be diversified away by investing in both Netflix and Pfizer 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 Pfizer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Pfizer Inc, you can compare the effects of market volatilities on Netflix and Pfizer 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 Pfizer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Pfizer.
Diversification Opportunities for Netflix and Pfizer
Pay attention - limited upside
The 3 months correlation between Netflix and Pfizer is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Pfizer Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pfizer Inc 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 Pfizer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pfizer Inc has no effect on the direction of Netflix i.e., Netflix and Pfizer go up and down completely randomly.
Pair Corralation between Netflix and Pfizer
Given the investment horizon of 90 days Netflix is expected to generate 0.74 times more return on investment than Pfizer. However, Netflix is 1.35 times less risky than Pfizer. It trades about 0.75 of its potential returns per unit of risk. Pfizer Inc is currently generating about -0.3 per unit of risk. If you would invest 74,912 in Netflix on August 27, 2024 and sell it today you would earn a total of 14,867 from holding Netflix or generate 19.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix vs. Pfizer Inc
Performance |
| Timeline |
| Netflix |
| Pfizer Inc |
Netflix and Pfizer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Pfizer
The main advantage of trading using opposite Netflix and Pfizer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Pfizer 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 Pfizer will offset losses from the drop in Pfizer's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Pfizer vs. Capricor Therapeutics | Pfizer vs. Soleno Therapeutics | Pfizer vs. Bio Path Holdings | Pfizer vs. Moleculin Biotech |
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.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |