Correlation Between Netflix and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Netflix and Tiaa Cref 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 Tiaa Cref into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Tiaa Cref Bond Plus, you can compare the effects of market volatilities on Netflix and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Tiaa Cref.
Diversification Opportunities for Netflix and Tiaa Cref
Very good diversification
The 3 months correlation between Netflix and Tiaa is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Tiaa Cref Bond Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Bond 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Bond has no effect on the direction of Netflix i.e., Netflix and Tiaa Cref go up and down completely randomly.
Pair Corralation between Netflix and Tiaa Cref
Given the investment horizon of 90 days Netflix is expected to generate 5.51 times more return on investment than Tiaa Cref. However, Netflix is 5.51 times more volatile than Tiaa Cref Bond Plus. It trades about 0.45 of its potential returns per unit of risk. Tiaa Cref Bond Plus is currently generating about 0.16 per unit of risk. If you would invest 80,544 in Netflix on September 12, 2024 and sell it today you would earn a total of 13,486 from holding Netflix or generate 16.74% 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. Tiaa Cref Bond Plus
Performance |
| Timeline |
| Netflix |
| Tiaa Cref Bond |
Netflix and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Tiaa Cref
The main advantage of trading using opposite Netflix and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Tiaa Cref vs. Metropolitan West Total | Tiaa Cref vs. Metropolitan West Total | Tiaa Cref vs. Pimco Total Return | Tiaa Cref vs. Total Return Fund |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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