Correlation Between Netflix and Garda
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By analyzing existing cross correlation between Netflix and Garda World Security, you can compare the effects of market volatilities on Netflix and Garda 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 Garda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Garda.
Diversification Opportunities for Netflix and Garda
Excellent diversification
The 3 months correlation between Netflix and Garda is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Garda World Security in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Garda World Security 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 Garda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Garda World Security has no effect on the direction of Netflix i.e., Netflix and Garda go up and down completely randomly.
Pair Corralation between Netflix and Garda
Given the investment horizon of 90 days Netflix is expected to generate 18.13 times more return on investment than Garda. However, Netflix is 18.13 times more volatile than Garda World Security. It trades about 0.49 of its potential returns per unit of risk. Garda World Security is currently generating about 0.24 per unit of risk. If you would invest 75,374 in Netflix on August 31, 2024 and sell it today you would earn a total of 12,360 from holding Netflix or generate 16.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 40.91% |
| Values | Daily Returns |
Netflix vs. Garda World Security
Performance |
| Timeline |
| Netflix |
| Garda World Security |
Netflix and Garda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Garda
The main advantage of trading using opposite Netflix and Garda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Garda 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 Garda will offset losses from the drop in Garda's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Garda vs. AEP TEX INC | Garda vs. US BANK NATIONAL | Garda vs. FactSet Research Systems | Garda 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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