Correlation Between Netflix and SVI Public
Can any of the company-specific risk be diversified away by investing in both Netflix and SVI Public 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 SVI Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and SVI Public, you can compare the effects of market volatilities on Netflix and SVI Public 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 SVI Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and SVI Public.
Diversification Opportunities for Netflix and SVI Public
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Netflix and SVI is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and SVI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVI Public 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 SVI Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVI Public has no effect on the direction of Netflix i.e., Netflix and SVI Public go up and down completely randomly.
Pair Corralation between Netflix and SVI Public
Given the investment horizon of 90 days Netflix is expected to generate 1.11 times more return on investment than SVI Public. However, Netflix is 1.11 times more volatile than SVI Public. It trades about 0.04 of its potential returns per unit of risk. SVI Public is currently generating about 0.02 per unit of risk. If you would invest 90,043 in Netflix on December 28, 2024 and sell it today you would earn a total of 3,342 from holding Netflix or generate 3.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Netflix vs. SVI Public
Performance |
Timeline |
Netflix |
SVI Public |
Netflix and SVI Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Netflix and SVI Public
The main advantage of trading using opposite Netflix and SVI Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, SVI Public 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 SVI Public will offset losses from the drop in SVI Public's long position.Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
SVI Public vs. KCE Electronics Public | SVI Public vs. Hana Microelectronics Public | SVI Public vs. Precious Shipping Public | SVI Public vs. Siri Prime Office |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |