Correlation Between Netflix and Adobe
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By analyzing existing cross correlation between Netflix and Adobe 23 percent, you can compare the effects of market volatilities on Netflix and Adobe 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 Adobe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Adobe.
Diversification Opportunities for Netflix and Adobe
Pay attention - limited upside
The 3 months correlation between Netflix and Adobe is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Adobe 23 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adobe 23 percent 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 Adobe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adobe 23 percent has no effect on the direction of Netflix i.e., Netflix and Adobe go up and down completely randomly.
Pair Corralation between Netflix and Adobe
Given the investment horizon of 90 days Netflix is expected to generate 2.4 times more return on investment than Adobe. However, Netflix is 2.4 times more volatile than Adobe 23 percent. It trades about 0.53 of its potential returns per unit of risk. Adobe 23 percent is currently generating about -0.18 per unit of risk. If you would invest 75,603 in Netflix on September 1, 2024 and sell it today you would earn a total of 13,078 from holding Netflix or generate 17.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Netflix vs. Adobe 23 percent
Performance |
| Timeline |
| Netflix |
| Adobe 23 percent |
Netflix and Adobe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Adobe
The main advantage of trading using opposite Netflix and Adobe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Adobe 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 Adobe will offset losses from the drop in Adobe's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Adobe vs. East Africa Metals | Adobe vs. Lincoln Educational Services | Adobe vs. Zane Interactive Publishing | Adobe vs. AMREP |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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