Correlation Between Netflix and ADAPTHEALTH
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By analyzing existing cross correlation between Netflix and ADAPTHEALTH LLC 6125, you can compare the effects of market volatilities on Netflix and ADAPTHEALTH 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 ADAPTHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and ADAPTHEALTH.
Diversification Opportunities for Netflix and ADAPTHEALTH
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Netflix and ADAPTHEALTH is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and ADAPTHEALTH LLC 6125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADAPTHEALTH LLC 6125 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 ADAPTHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADAPTHEALTH LLC 6125 has no effect on the direction of Netflix i.e., Netflix and ADAPTHEALTH go up and down completely randomly.
Pair Corralation between Netflix and ADAPTHEALTH
Given the investment horizon of 90 days Netflix is expected to generate 38.49 times less return on investment than ADAPTHEALTH. But when comparing it to its historical volatility, Netflix is 45.65 times less risky than ADAPTHEALTH. It trades about 0.11 of its potential returns per unit of risk. ADAPTHEALTH LLC 6125 is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 9,308 in ADAPTHEALTH LLC 6125 on September 2, 2024 and sell it today you would earn a total of 547.00 from holding ADAPTHEALTH LLC 6125 or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.25% |
| Values | Daily Returns |
Netflix vs. ADAPTHEALTH LLC 6125
Performance |
| Timeline |
| Netflix |
| ADAPTHEALTH LLC 6125 |
Netflix and ADAPTHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and ADAPTHEALTH
The main advantage of trading using opposite Netflix and ADAPTHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, ADAPTHEALTH 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 ADAPTHEALTH will offset losses from the drop in ADAPTHEALTH's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| ADAPTHEALTH vs. AEP TEX INC | ADAPTHEALTH vs. US BANK NATIONAL | ADAPTHEALTH vs. FactSet Research Systems | ADAPTHEALTH vs. Golden Agri Resources |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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