Correlation Between Atlanta Braves and Netflix

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

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

Diversification Opportunities for Atlanta Braves and Netflix

-0.27

Correlation Coefficient

Atlanta Braves  Netflix

Very good diversification

The 3 months correlation between Atlanta and Netflix is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Atlanta Braves Holdings and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and Atlanta Braves 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 Atlanta Braves Holdings 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 Atlanta Braves i.e., Atlanta Braves and Netflix go up and down completely randomly.

Pair Corralation between Atlanta Braves and Netflix

Assuming the 90 days horizon Atlanta Braves Holdings is expected to generate 0.45 times more return on investment than Netflix. However, Atlanta Braves Holdings is 2.25 times less risky than Netflix. It trades about 0.0 of its potential returns per unit of risk. Netflix is currently generating about -0.13 per unit of risk. If you would invest  3,881  in Atlanta Braves Holdings on February 6, 2024 and sell it today you would lose (2.00) from holding Atlanta Braves Holdings or give up 0.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Atlanta Braves Holdings  vs.  Netflix

Atlanta Braves Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atlanta Braves Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Atlanta Braves is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Netflix

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Netflix are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong essential 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 Atlanta Braves and Netflix

The main advantage of trading using opposite Atlanta Braves and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanta Braves 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 Atlanta Braves Holdings 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.