Correlation Between Netflix and USCF ETF
Can any of the company-specific risk be diversified away by investing in both Netflix and USCF ETF 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 USCF ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and USCF ETF Trust, you can compare the effects of market volatilities on Netflix and USCF ETF 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 USCF ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and USCF ETF.
Diversification Opportunities for Netflix and USCF ETF
Very good diversification
The 3 months correlation between Netflix and USCF is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and USCF ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USCF ETF Trust 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 USCF ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USCF ETF Trust has no effect on the direction of Netflix i.e., Netflix and USCF ETF go up and down completely randomly.
Pair Corralation between Netflix and USCF ETF
Given the investment horizon of 90 days Netflix is expected to generate 2.16 times more return on investment than USCF ETF. However, Netflix is 2.16 times more volatile than USCF ETF Trust. It trades about 0.41 of its potential returns per unit of risk. USCF ETF Trust is currently generating about -0.11 per unit of risk. If you would invest 81,950 in Netflix on September 13, 2024 and sell it today you would earn a total of 11,706 from holding Netflix or generate 14.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Netflix vs. USCF ETF Trust
Performance |
| Timeline |
| Netflix |
| USCF ETF Trust |
Netflix and USCF ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and USCF ETF
The main advantage of trading using opposite Netflix and USCF ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, USCF ETF 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 USCF ETF will offset losses from the drop in USCF ETF's long position.| Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
| USCF ETF vs. Freedom Day Dividend | USCF ETF vs. Franklin Templeton ETF | USCF ETF vs. iShares MSCI China | USCF ETF vs. Tidal Trust II |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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