Correlation Between Netflix and Sixt SE
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By analyzing existing cross correlation between Netflix and Sixt SE, you can compare the effects of market volatilities on Netflix and Sixt SE 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 Sixt SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Sixt SE.
Diversification Opportunities for Netflix and Sixt SE
Weak diversification
The 3 months correlation between Netflix and Sixt is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Sixt SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt SE 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 Sixt SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt SE has no effect on the direction of Netflix i.e., Netflix and Sixt SE go up and down completely randomly.
Pair Corralation between Netflix and Sixt SE
Given the investment horizon of 90 days Netflix is expected to generate 1.22 times more return on investment than Sixt SE. However, Netflix is 1.22 times more volatile than Sixt SE. It trades about 0.1 of its potential returns per unit of risk. Sixt SE is currently generating about 0.02 per unit of risk. If you would invest 32,034 in Netflix on September 3, 2024 and sell it today you would earn a total of 56,647 from holding Netflix or generate 176.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.02% |
| Values | Daily Returns |
Netflix vs. Sixt SE
Performance |
| Timeline |
| Netflix |
| Sixt SE |
Netflix and Sixt SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Sixt SE
The main advantage of trading using opposite Netflix and Sixt SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Sixt SE 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 Sixt SE will offset losses from the drop in Sixt SE's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Sixt SE vs. The Trade Desk | Sixt SE vs. FLOW TRADERS LTD | Sixt SE vs. Hyatt Hotels | Sixt SE vs. SALESFORCE INC CDR |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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