Correlation Between Netflix and Thaifoods Group
Can any of the company-specific risk be diversified away by investing in both Netflix and Thaifoods Group 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 Thaifoods Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Thaifoods Group Public, you can compare the effects of market volatilities on Netflix and Thaifoods Group 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 Thaifoods Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Thaifoods Group.
Diversification Opportunities for Netflix and Thaifoods Group
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Netflix and Thaifoods is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Thaifoods Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaifoods Group Public 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 Thaifoods Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaifoods Group Public has no effect on the direction of Netflix i.e., Netflix and Thaifoods Group go up and down completely randomly.
Pair Corralation between Netflix and Thaifoods Group
Given the investment horizon of 90 days Netflix is expected to generate 0.75 times more return on investment than Thaifoods Group. However, Netflix is 1.33 times less risky than Thaifoods Group. It trades about 0.57 of its potential returns per unit of risk. Thaifoods Group Public is currently generating about -0.21 per unit of risk. If you would invest 75,551 in Netflix on September 4, 2024 and sell it today you would earn a total of 14,223 from holding Netflix or generate 18.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Netflix vs. Thaifoods Group Public
Performance |
| Timeline |
| Netflix |
| Thaifoods Group Public |
Netflix and Thaifoods Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Thaifoods Group
The main advantage of trading using opposite Netflix and Thaifoods Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Thaifoods Group 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 Thaifoods Group will offset losses from the drop in Thaifoods Group's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Thaifoods Group vs. Thaifoods Group Public | Thaifoods Group vs. Thai President Foods | Thaifoods Group vs. Thai Capital | Thaifoods Group vs. Thaicom Public |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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