Correlation Between NetFlix and Office Properties
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By analyzing existing cross correlation between NetFlix 3625 percent and Office Properties Income, you can compare the effects of market volatilities on NetFlix and Office Properties 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 Office Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of NetFlix and Office Properties.
Diversification Opportunities for NetFlix and Office Properties
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NetFlix and Office is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding NetFlix 3625 percent and Office Properties Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Office Properties Income 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 3625 percent are associated (or correlated) with Office Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Office Properties Income has no effect on the direction of NetFlix i.e., NetFlix and Office Properties go up and down completely randomly.
Pair Corralation between NetFlix and Office Properties
Assuming the 90 days trading horizon NetFlix 3625 percent is expected to under-perform the Office Properties. But the bond apears to be less risky and, when comparing its historical volatility, NetFlix 3625 percent is 11.78 times less risky than Office Properties. The bond trades about -0.43 of its potential returns per unit of risk. The Office Properties Income is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 187.00 in Office Properties Income on August 27, 2024 and sell it today you would lose (22.00) from holding Office Properties Income or give up 11.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 28.57% |
| Values | Daily Returns |
NetFlix 3625 percent vs. Office Properties Income
Performance |
| Timeline |
| NetFlix 3625 percent |
| Office Properties Income |
NetFlix and Office Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NetFlix and Office Properties
The main advantage of trading using opposite NetFlix and Office Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NetFlix position performs unexpectedly, Office Properties 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 Office Properties will offset losses from the drop in Office Properties' long position.| NetFlix vs. The Coca Cola | NetFlix vs. JPMorgan Chase Co | NetFlix vs. Dupont De Nemours | NetFlix vs. Alcoa Corp |
| Office Properties vs. Hudson Pacific Properties | Office Properties vs. Piedmont Office Realty | Office Properties vs. City Office | Office Properties vs. Kilroy Realty Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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