Correlation Between Netflix and Grupo Posadas
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By analyzing existing cross correlation between Netflix and Grupo Posadas SAB, you can compare the effects of market volatilities on Netflix and Grupo Posadas 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 Grupo Posadas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Grupo Posadas.
Diversification Opportunities for Netflix and Grupo Posadas
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netflix and Grupo is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Grupo Posadas SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Posadas SAB 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 Grupo Posadas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Posadas SAB has no effect on the direction of Netflix i.e., Netflix and Grupo Posadas go up and down completely randomly.
Pair Corralation between Netflix and Grupo Posadas
Given the investment horizon of 90 days Netflix is expected to generate 1.9 times more return on investment than Grupo Posadas. However, Netflix is 1.9 times more volatile than Grupo Posadas SAB. It trades about 0.12 of its potential returns per unit of risk. Grupo Posadas SAB is currently generating about -0.02 per unit of risk. If you would invest 29,041 in Netflix on September 5, 2024 and sell it today you would earn a total of 61,176 from holding Netflix or generate 210.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Netflix vs. Grupo Posadas SAB
Performance |
| Timeline |
| Netflix |
| Grupo Posadas SAB |
Netflix and Grupo Posadas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Grupo Posadas
The main advantage of trading using opposite Netflix and Grupo Posadas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Grupo Posadas 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 Grupo Posadas will offset losses from the drop in Grupo Posadas' long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Grupo Posadas vs. Axtel SAB de | Grupo Posadas vs. Fomento Econmico Mexicano | Grupo Posadas vs. Lloyds Banking Group | Grupo Posadas vs. Apple Inc |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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