Correlation Between Netflix and US Commodity
Can any of the company-specific risk be diversified away by investing in both Netflix and US Commodity at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Netflix and US Commodity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and US Commodity Funds, you can compare the effects of market volatilities on Netflix and US Commodity 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 US Commodity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and US Commodity.
Diversification Opportunities for Netflix and US Commodity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netflix and USOU is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and US Commodity Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Commodity Funds 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 US Commodity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Commodity Funds has no effect on the direction of Netflix i.e., Netflix and US Commodity go up and down completely randomly.
Pair Corralation between Netflix and US Commodity
If you would invest 68,680 in Netflix on September 12, 2024 and sell it today you would earn a total of 22,655 from holding Netflix or generate 32.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Netflix vs. US Commodity Funds
Performance |
| Timeline |
| Netflix |
| US Commodity Funds |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Netflix and US Commodity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and US Commodity
The main advantage of trading using opposite Netflix and US Commodity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, US Commodity 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 US Commodity will offset losses from the drop in US Commodity's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| US Commodity vs. FT Vest Equity | US Commodity vs. Zillow Group Class | US Commodity vs. Northern Lights | US Commodity vs. VanEck Vectors Moodys |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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