Correlation Between Netflix and PACIFIC
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By analyzing existing cross correlation between Netflix and PACIFIC GAS ELECTRIC, you can compare the effects of market volatilities on Netflix and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and PACIFIC.
Diversification Opportunities for Netflix and PACIFIC
Excellent diversification
The 3 months correlation between Netflix and PACIFIC is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and PACIFIC GAS ELECTRIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS ELECTRIC 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS ELECTRIC has no effect on the direction of Netflix i.e., Netflix and PACIFIC go up and down completely randomly.
Pair Corralation between Netflix and PACIFIC
Given the investment horizon of 90 days Netflix is expected to generate 1.17 times more return on investment than PACIFIC. However, Netflix is 1.17 times more volatile than PACIFIC GAS ELECTRIC. It trades about 0.57 of its potential returns per unit of risk. PACIFIC GAS ELECTRIC is currently generating about -0.08 per unit of risk. If you would invest 75,551 in Netflix on September 4, 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 | 95.24% |
| Values | Daily Returns |
Netflix vs. PACIFIC GAS ELECTRIC
Performance |
| Timeline |
| Netflix |
| PACIFIC GAS ELECTRIC |
Netflix and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and PACIFIC
The main advantage of trading using opposite Netflix and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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