Correlation Between Netflix and Casa De
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By analyzing existing cross correlation between Netflix and Casa de Bolsa, you can compare the effects of market volatilities on Netflix and Casa De 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 Casa De. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Casa De.
Diversification Opportunities for Netflix and Casa De
Almost no diversification
The 3 months correlation between Netflix and Casa is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Casa de Bolsa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Casa de Bolsa 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 Casa De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Casa de Bolsa has no effect on the direction of Netflix i.e., Netflix and Casa De go up and down completely randomly.
Pair Corralation between Netflix and Casa De
Assuming the 90 days trading horizon Netflix is expected to generate 5.56 times more return on investment than Casa De. However, Netflix is 5.56 times more volatile than Casa de Bolsa. It trades about 0.25 of its potential returns per unit of risk. Casa de Bolsa is currently generating about 0.13 per unit of risk. If you would invest 1,349,000 in Netflix on September 15, 2024 and sell it today you would earn a total of 504,300 from holding Netflix or generate 37.38% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Netflix vs. Casa de Bolsa
Performance |
Timeline |
Netflix |
Casa de Bolsa |
Netflix and Casa De Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Netflix and Casa De
The main advantage of trading using opposite Netflix and Casa De positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Casa De 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 Casa De will offset losses from the drop in Casa De's long position.Netflix vs. Deutsche Bank Aktiengesellschaft | Netflix vs. CVS Health | Netflix vs. United Airlines Holdings | Netflix vs. Cognizant Technology Solutions |
Casa De vs. Samsung Electronics Co | Casa De vs. Sony Group | Casa De vs. Taiwan Semiconductor Manufacturing | Casa De vs. Alibaba Group Holding |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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