Correlation Between Netflix and Scottie Resources
Can any of the company-specific risk be diversified away by investing in both Netflix and Scottie Resources 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 Scottie Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Scottie Resources Corp, you can compare the effects of market volatilities on Netflix and Scottie Resources 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 Scottie Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Scottie Resources.
Diversification Opportunities for Netflix and Scottie Resources
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Netflix and Scottie is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Scottie Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scottie Resources Corp 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 Scottie Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scottie Resources Corp has no effect on the direction of Netflix i.e., Netflix and Scottie Resources go up and down completely randomly.
Pair Corralation between Netflix and Scottie Resources
Given the investment horizon of 90 days Netflix is expected to generate 0.31 times more return on investment than Scottie Resources. However, Netflix is 3.25 times less risky than Scottie Resources. It trades about 0.15 of its potential returns per unit of risk. Scottie Resources Corp 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix vs. Scottie Resources Corp
Performance |
| Timeline |
| Netflix |
| Scottie Resources Corp |
Netflix and Scottie Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Scottie Resources
The main advantage of trading using opposite Netflix and Scottie Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Scottie Resources 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 Scottie Resources will offset losses from the drop in Scottie Resources' long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Scottie Resources vs. HUMANA INC | Scottie Resources vs. SCOR PK | Scottie Resources vs. Aquagold International | Scottie Resources vs. Thrivent High Yield |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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