Correlation Between Netflix and Valora Cri
Can any of the company-specific risk be diversified away by investing in both Netflix and Valora Cri 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 Valora Cri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Valora Cri Indice, you can compare the effects of market volatilities on Netflix and Valora Cri 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 Valora Cri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Valora Cri.
Diversification Opportunities for Netflix and Valora Cri
-0.93 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Netflix and Valora is -0.93. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Valora Cri Indice in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valora Cri Indice 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 Valora Cri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valora Cri Indice has no effect on the direction of Netflix i.e., Netflix and Valora Cri go up and down completely randomly.
Pair Corralation between Netflix and Valora Cri
Given the investment horizon of 90 days Netflix is expected to generate 1.45 times more return on investment than Valora Cri. However, Netflix is 1.45 times more volatile than Valora Cri Indice. It trades about 0.55 of its potential returns per unit of risk. Valora Cri Indice is currently generating about -0.27 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 13,130 from holding Netflix or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Netflix vs. Valora Cri Indice
Performance |
| Timeline |
| Netflix |
| Valora Cri Indice |
Netflix and Valora Cri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Valora Cri
The main advantage of trading using opposite Netflix and Valora Cri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Valora Cri 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 Valora Cri will offset losses from the drop in Valora Cri's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Valora Cri vs. Fundo Investimento Imobiliario | Valora Cri vs. Fras le SA | Valora Cri vs. Western Digital | Valora Cri vs. Clave Indices De |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |