Correlation Between Netflix and Upstart Holdings
Can any of the company-specific risk be diversified away by investing in both Netflix and Upstart Holdings 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 Upstart Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Upstart Holdings, you can compare the effects of market volatilities on Netflix and Upstart Holdings 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 Upstart Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Upstart Holdings.
Diversification Opportunities for Netflix and Upstart Holdings
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Netflix and Upstart is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Upstart Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upstart Holdings 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 Upstart Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upstart Holdings has no effect on the direction of Netflix i.e., Netflix and Upstart Holdings go up and down completely randomly.
Pair Corralation between Netflix and Upstart Holdings
Given the investment horizon of 90 days Netflix is expected to generate 0.19 times more return on investment than Upstart Holdings. However, Netflix is 5.32 times less risky than Upstart Holdings. It trades about 0.0 of its potential returns per unit of risk. Upstart Holdings is currently generating about 0.0 per unit of risk. If you would invest 99,487 in Netflix on December 6, 2024 and sell it today you would lose (395.00) from holding Netflix or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix vs. Upstart Holdings
Performance |
| Timeline |
| Netflix |
| Upstart Holdings |
Netflix and Upstart Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Upstart Holdings
The main advantage of trading using opposite Netflix and Upstart Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Upstart Holdings 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 Upstart Holdings will offset losses from the drop in Upstart Holdings' long position.| Netflix vs. Paramount Global Class | ||
| Netflix vs. Roku Inc | ||
| Netflix vs. Warner Bros Discovery | ||
| Netflix vs. AMC Entertainment Holdings |
| Upstart Holdings vs. SoFi Technologies | ||
| Upstart Holdings vs. Visa Class A | ||
| Upstart Holdings vs. Mastercard | ||
| Upstart Holdings vs. American Express |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Global Correlations Find global opportunities by holding instruments from different markets |