Correlation Between Vivendi SE and Netflix
Can any of the company-specific risk be diversified away by investing in both Vivendi SE and Netflix 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 Vivendi SE and Netflix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vivendi SE and Netflix, you can compare the effects of market volatilities on Vivendi SE and Netflix 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 Vivendi SE with a short position of Netflix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivendi SE and Netflix.
Diversification Opportunities for Vivendi SE and Netflix
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Vivendi and Netflix is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Vivendi SE and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and Vivendi SE 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 Vivendi SE are associated (or correlated) with Netflix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Netflix has no effect on the direction of Vivendi SE i.e., Vivendi SE and Netflix go up and down completely randomly.
Pair Corralation between Vivendi SE and Netflix
Assuming the 90 days trading horizon Vivendi SE is expected to generate 1.33 times less return on investment than Netflix. In addition to that, Vivendi SE is 1.26 times more volatile than Netflix. It trades about 0.09 of its total potential returns per unit of risk. Netflix is currently generating about 0.16 per unit of volatility. If you would invest 86,310 in Netflix on November 3, 2024 and sell it today you would earn a total of 7,460 from holding Netflix or generate 8.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vivendi SE vs. Netflix
Performance |
| Timeline |
| Vivendi SE |
| Netflix |
Vivendi SE and Netflix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vivendi SE and Netflix
The main advantage of trading using opposite Vivendi SE and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivendi SE position performs unexpectedly, Netflix 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 Netflix will offset losses from the drop in Netflix's long position.| Vivendi SE vs. Coeur Mining | Vivendi SE vs. Ross Stores | Vivendi SE vs. FIREWEED METALS P | Vivendi SE vs. GREENX METALS LTD |
| Netflix vs. H2O Retailing | Netflix vs. Neinor Homes SA | Netflix vs. The Trade Desk | Netflix vs. CANON MARKETING JP |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |