Correlation Between Netflix and AMEREN
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By analyzing existing cross correlation between Netflix and AMEREN ILL 37, you can compare the effects of market volatilities on Netflix and AMEREN 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 AMEREN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and AMEREN.
Diversification Opportunities for Netflix and AMEREN
Very good diversification
The 3 months correlation between Netflix and AMEREN is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and AMEREN ILL 37 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMEREN ILL 37 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 AMEREN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMEREN ILL 37 has no effect on the direction of Netflix i.e., Netflix and AMEREN go up and down completely randomly.
Pair Corralation between Netflix and AMEREN
Given the investment horizon of 90 days Netflix is expected to generate 1.15 times more return on investment than AMEREN. However, Netflix is 1.15 times more volatile than AMEREN ILL 37. It trades about 0.53 of its potential returns per unit of risk. AMEREN ILL 37 is currently generating about 0.17 per unit of risk. If you would invest 75,610 in Netflix on September 2, 2024 and sell it today you would earn a total of 13,071 from holding Netflix or generate 17.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Netflix vs. AMEREN ILL 37
Performance |
| Timeline |
| Netflix |
| AMEREN ILL 37 |
Netflix and AMEREN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and AMEREN
The main advantage of trading using opposite Netflix and AMEREN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, AMEREN 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 AMEREN will offset losses from the drop in AMEREN's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| AMEREN vs. AEP TEX INC | AMEREN vs. US BANK NATIONAL | AMEREN vs. International Business Machines | AMEREN vs. Intel |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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