Correlation Between Netflix and PNE AG
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By analyzing existing cross correlation between Netflix and PNE AG, you can compare the effects of market volatilities on Netflix and PNE AG 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 PNE AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and PNE AG.
Diversification Opportunities for Netflix and PNE AG
Excellent diversification
The 3 months correlation between Netflix and PNE is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and PNE AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PNE AG 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 PNE AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PNE AG has no effect on the direction of Netflix i.e., Netflix and PNE AG go up and down completely randomly.
Pair Corralation between Netflix and PNE AG
Given the investment horizon of 90 days Netflix is expected to generate 1.38 times more return on investment than PNE AG. However, Netflix is 1.38 times more volatile than PNE AG. It trades about 0.15 of its potential returns per unit of risk. PNE AG is currently generating about -0.03 per unit of risk. If you would invest 45,376 in Netflix on September 3, 2024 and sell it today you would earn a total of 43,305 from holding Netflix or generate 95.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Netflix vs. PNE AG
Performance |
| Timeline |
| Netflix |
| PNE AG |
Netflix and PNE AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and PNE AG
The main advantage of trading using opposite Netflix and PNE AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, PNE AG 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 PNE AG will offset losses from the drop in PNE AG's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| PNE AG vs. FARO Technologies | PNE AG vs. Virtus Investment Partners | PNE AG vs. Gladstone Investment | PNE AG vs. REINET INVESTMENTS SCA |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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