Correlation Between Netflix and ANTHEM
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By analyzing existing cross correlation between Netflix and ANTHEM INC 455, you can compare the effects of market volatilities on Netflix and ANTHEM 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 ANTHEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and ANTHEM.
Diversification Opportunities for Netflix and ANTHEM
Excellent diversification
The 3 months correlation between Netflix and ANTHEM is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and ANTHEM INC 455 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTHEM INC 455 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 ANTHEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTHEM INC 455 has no effect on the direction of Netflix i.e., Netflix and ANTHEM go up and down completely randomly.
Pair Corralation between Netflix and ANTHEM
Given the investment horizon of 90 days Netflix is expected to generate 1.49 times more return on investment than ANTHEM. However, Netflix is 1.49 times more volatile than ANTHEM INC 455. It trades about 0.46 of its potential returns per unit of risk. ANTHEM INC 455 is currently generating about 0.09 per unit of risk. If you would invest 74,912 in Netflix on August 27, 2024 and sell it today you would earn a total of 11,647 from holding Netflix or generate 15.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 76.19% |
| Values | Daily Returns |
Netflix vs. ANTHEM INC 455
Performance |
| Timeline |
| Netflix |
| ANTHEM INC 455 |
Netflix and ANTHEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and ANTHEM
The main advantage of trading using opposite Netflix and ANTHEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, ANTHEM 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 ANTHEM will offset losses from the drop in ANTHEM's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| ANTHEM vs. Texas Roadhouse | ANTHEM vs. Verra Mobility Corp | ANTHEM vs. Sun Country Airlines | ANTHEM vs. The Cheesecake Factory |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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