Correlation Between Netflix and Grupo Carso
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By analyzing existing cross correlation between Netflix and Grupo Carso SAB, you can compare the effects of market volatilities on Netflix and Grupo Carso 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 Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Grupo Carso.
Diversification Opportunities for Netflix and Grupo Carso
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Netflix and Grupo is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB 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 Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of Netflix i.e., Netflix and Grupo Carso go up and down completely randomly.
Pair Corralation between Netflix and Grupo Carso
Given the investment horizon of 90 days Netflix is expected to under-perform the Grupo Carso. In addition to that, Netflix is 1.07 times more volatile than Grupo Carso SAB. It trades about -0.17 of its total potential returns per unit of risk. Grupo Carso SAB is currently generating about -0.14 per unit of volatility. If you would invest 14,706 in Grupo Carso SAB on February 2, 2024 and sell it today you would lose (1,233) from holding Grupo Carso SAB or give up 8.38% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Netflix vs. Grupo Carso SAB
Performance |
Timeline |
Netflix |
Grupo Carso SAB |
Netflix and Grupo Carso Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Netflix and Grupo Carso
The main advantage of trading using opposite Netflix and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Grupo Carso 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 Grupo Carso will offset losses from the drop in Grupo Carso's long position.The idea behind Netflix and Grupo Carso SAB 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.Grupo Carso vs. Grupo Financiero Inbursa | Grupo Carso vs. Kimberly Clark de Mxico | Grupo Carso vs. Grupo Televisa SAB | Grupo Carso vs. Grupo Bimbo SAB |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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