Correlation Between Netflix and Trisura
Can any of the company-specific risk be diversified away by investing in both Netflix and Trisura 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 Trisura into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and Trisura Group, you can compare the effects of market volatilities on Netflix and Trisura 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 Trisura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Trisura.
Diversification Opportunities for Netflix and Trisura
Very good diversification
The 3 months correlation between Netflix and Trisura is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Trisura Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisura Group 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 Trisura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisura Group has no effect on the direction of Netflix i.e., Netflix and Trisura go up and down completely randomly.
Pair Corralation between Netflix and Trisura
Given the investment horizon of 90 days Netflix is expected to generate 1.06 times more return on investment than Trisura. However, Netflix is 1.06 times more volatile than Trisura Group. It trades about 0.08 of its potential returns per unit of risk. Trisura Group is currently generating about -0.15 per unit of risk. If you would invest 89,774 in Netflix on December 2, 2024 and sell it today you would earn a total of 8,282 from holding Netflix or generate 9.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 98.39% |
Values | Daily Returns |
Netflix vs. Trisura Group
Performance |
Timeline |
Netflix |
Trisura Group |
Netflix and Trisura Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Netflix and Trisura
The main advantage of trading using opposite Netflix and Trisura positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Trisura 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 Trisura will offset losses from the drop in Trisura's long position.Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
Trisura vs. Brookfield Business Partners | Trisura vs. ECN Capital Corp | Trisura vs. Colliers International Group | Trisura vs. Altus Group Limited |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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