Correlation Between Netflix and GLOBAL
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By analyzing existing cross correlation between Netflix and GLOBAL PAYMENTS INC, you can compare the effects of market volatilities on Netflix and GLOBAL 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 GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and GLOBAL.
Diversification Opportunities for Netflix and GLOBAL
Pay attention - limited upside
The 3 months correlation between Netflix and GLOBAL is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and GLOBAL PAYMENTS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLOBAL PAYMENTS INC 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 GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLOBAL PAYMENTS INC has no effect on the direction of Netflix i.e., Netflix and GLOBAL go up and down completely randomly.
Pair Corralation between Netflix and GLOBAL
Given the investment horizon of 90 days Netflix is expected to generate 1.14 times more return on investment than GLOBAL. However, Netflix is 1.14 times more volatile than GLOBAL PAYMENTS INC. It trades about 0.59 of its potential returns per unit of risk. GLOBAL PAYMENTS INC is currently generating about -0.2 per unit of risk. If you would invest 75,551 in Netflix on September 3, 2024 and sell it today you would earn a total of 14,223 from holding Netflix or generate 18.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Netflix vs. GLOBAL PAYMENTS INC
Performance |
| Timeline |
| Netflix |
| GLOBAL PAYMENTS INC |
Netflix and GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and GLOBAL
The main advantage of trading using opposite Netflix and GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, GLOBAL 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 GLOBAL will offset losses from the drop in GLOBAL's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| GLOBAL vs. Ainsworth Game Technology | GLOBAL vs. Yum Brands | GLOBAL vs. The Wendys Co | GLOBAL vs. Sweetgreen |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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