Correlation Between Netflix and Calvert Large
Can any of the company-specific risk be diversified away by investing in both Netflix and Calvert Large 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 Calvert Large into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Calvert Large Cap, you can compare the effects of market volatilities on Netflix and Calvert Large 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 Calvert Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Calvert Large.
Diversification Opportunities for Netflix and Calvert Large
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Netflix and Calvert is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Calvert Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Large Cap 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 Calvert Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Large Cap has no effect on the direction of Netflix i.e., Netflix and Calvert Large go up and down completely randomly.
Pair Corralation between Netflix and Calvert Large
Given the investment horizon of 90 days Netflix is expected to generate 2.75 times more return on investment than Calvert Large. However, Netflix is 2.75 times more volatile than Calvert Large Cap. It trades about 0.26 of its potential returns per unit of risk. Calvert Large Cap is currently generating about 0.21 per unit of risk. If you would invest 68,680 in Netflix on September 12, 2024 and sell it today you would earn a total of 24,976 from holding Netflix or generate 36.37% 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. Calvert Large Cap
Performance |
Timeline |
Netflix |
Calvert Large Cap |
Netflix and Calvert Large Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Netflix and Calvert Large
The main advantage of trading using opposite Netflix and Calvert Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Calvert Large 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 Calvert Large will offset losses from the drop in Calvert Large's long position.Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
Calvert Large vs. Calvert Large Cap | Calvert Large vs. Calvert Equity Portfolio | Calvert Large vs. Calvert Small Cap | Calvert Large vs. Calvert Large Cap |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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