Correlation Between Netflix and ProShares
Can any of the company-specific risk be diversified away by investing in both Netflix and ProShares 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 ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and ProShares, you can compare the effects of market volatilities on Netflix and ProShares 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 ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and ProShares.
Diversification Opportunities for Netflix and ProShares
Pay attention - limited upside
The 3 months correlation between Netflix and ProShares is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and ProShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares 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 ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares has no effect on the direction of Netflix i.e., Netflix and ProShares go up and down completely randomly.
Pair Corralation between Netflix and ProShares
If you would invest 75,551 in Netflix on September 5, 2024 and sell it today you would earn a total of 14,666 from holding Netflix or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Netflix vs. ProShares
Performance |
| Timeline |
| Netflix |
| ProShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Netflix and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and ProShares
The main advantage of trading using opposite Netflix and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| ProShares vs. SPDR Bloomberg Barclays | ProShares vs. SPDR SSGA Fixed | ProShares vs. SPDR DoubleLine Short | ProShares vs. SPDR Portfolio Corporate |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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