Correlation Between Netflix and Xtract One
Can any of the company-specific risk be diversified away by investing in both Netflix and Xtract One 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 Xtract One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Xtract One Technologies, you can compare the effects of market volatilities on Netflix and Xtract One 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 Xtract One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Xtract One.
Diversification Opportunities for Netflix and Xtract One
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Netflix and Xtract is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Xtract One Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtract One Technologies 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 Xtract One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtract One Technologies has no effect on the direction of Netflix i.e., Netflix and Xtract One go up and down completely randomly.
Pair Corralation between Netflix and Xtract One
Given the investment horizon of 90 days Netflix is expected to generate 0.48 times more return on investment than Xtract One. However, Netflix is 2.09 times less risky than Xtract One. It trades about 0.15 of its potential returns per unit of risk. Xtract One Technologies is currently generating about -0.05 per unit of risk. If you would invest 67,583 in Netflix on September 14, 2024 and sell it today you would earn a total of 24,016 from holding Netflix or generate 35.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Netflix vs. Xtract One Technologies
Performance |
| Timeline |
| Netflix |
| Xtract One Technologies |
Netflix and Xtract One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Xtract One
The main advantage of trading using opposite Netflix and Xtract One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Xtract One 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 Xtract One will offset losses from the drop in Xtract One's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| Xtract One vs. Grindr Inc | Xtract One vs. Tracsis plc | Xtract One vs. Baijiayun Group | Xtract One vs. Japan System Techniques |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |