Correlation Between Netflix and Tingyi Holding
Can any of the company-specific risk be diversified away by investing in both Netflix and Tingyi Holding 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 Tingyi Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Tingyi Holding Corp, you can compare the effects of market volatilities on Netflix and Tingyi Holding 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 Tingyi Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Tingyi Holding.
Diversification Opportunities for Netflix and Tingyi Holding
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Netflix and Tingyi is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Tingyi Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tingyi Holding 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 Tingyi Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tingyi Holding Corp has no effect on the direction of Netflix i.e., Netflix and Tingyi Holding go up and down completely randomly.
Pair Corralation between Netflix and Tingyi Holding
If you would invest 47,447 in Netflix on September 14, 2024 and sell it today you would earn a total of 44,427 from holding Netflix or generate 93.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Netflix vs. Tingyi Holding Corp
Performance |
| Timeline |
| Netflix |
| Tingyi Holding Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Netflix and Tingyi Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Tingyi Holding
The main advantage of trading using opposite Netflix and Tingyi Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Tingyi Holding 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 Tingyi Holding will offset losses from the drop in Tingyi Holding's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Tingyi Holding vs. Torque Lifestyle Brands | Tingyi Holding vs. Naturally Splendid Enterprises | Tingyi Holding vs. Aryzta AG PK | Tingyi Holding vs. First Pacific |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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