Correlation Between Grupo Profuturo and Netflix

Can any of the company-specific risk be diversified away by investing in both Grupo Profuturo 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 Grupo Profuturo and Netflix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grupo Profuturo SAB and Netflix, you can compare the effects of market volatilities on Grupo Profuturo 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 Grupo Profuturo with a short position of Netflix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Profuturo and Netflix.

Diversification Opportunities for Grupo Profuturo and Netflix

0.0

Correlation Coefficient

Grupo Profuturo  Netflix

Pay attention - limited upside

The 3 months correlation between Grupo and Netflix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Profuturo SAB and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and Grupo Profuturo 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 Grupo Profuturo SAB 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 Grupo Profuturo i.e., Grupo Profuturo and Netflix go up and down completely randomly.

Pair Corralation between Grupo Profuturo and Netflix

If you would invest  1,857,350  in Netflix on December 29, 2024 and sell it today you would earn a total of  47,973  from holding Netflix or generate 2.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Grupo Profuturo SAB  vs.  Netflix

Grupo Profuturo SAB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grupo Profuturo SAB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Grupo Profuturo is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Netflix

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Netflix are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Netflix is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Grupo Profuturo and Netflix

The main advantage of trading using opposite Grupo Profuturo and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Profuturo 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.

The idea behind Grupo Profuturo SAB and Netflix pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..