Correlation Between Netflix and COMERICA
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By analyzing existing cross correlation between Netflix and COMERICA INC 4, you can compare the effects of market volatilities on Netflix and COMERICA 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 COMERICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and COMERICA.
Diversification Opportunities for Netflix and COMERICA
Excellent diversification
The 3 months correlation between Netflix and COMERICA is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and COMERICA INC 4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMERICA INC 4 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 COMERICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMERICA INC 4 has no effect on the direction of Netflix i.e., Netflix and COMERICA go up and down completely randomly.
Pair Corralation between Netflix and COMERICA
Given the investment horizon of 90 days Netflix is expected to generate 1.31 times more return on investment than COMERICA. However, Netflix is 1.31 times more volatile than COMERICA INC 4. It trades about 0.55 of its potential returns per unit of risk. COMERICA INC 4 is currently generating about 0.14 per unit of risk. If you would invest 76,424 in Netflix on August 23, 2024 and sell it today you would earn a total of 13,324 from holding Netflix or generate 17.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Netflix vs. COMERICA INC 4
Performance |
| Timeline |
| Netflix |
| COMERICA INC 4 |
Netflix and COMERICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and COMERICA
The main advantage of trading using opposite Netflix and COMERICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, COMERICA 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 COMERICA will offset losses from the drop in COMERICA's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| COMERICA vs. AEP TEX INC | COMERICA vs. US BANK NATIONAL | COMERICA vs. Destiny Tech100 | COMERICA vs. Marvell Technology Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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