Correlation Between OSX Brasil and Netflix

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

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

Diversification Opportunities for OSX Brasil and Netflix

-0.61

Correlation Coefficient

OSX Brasil  Netflix

Excellent diversification

The 3 months correlation between OSX and Netflix is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding OSX Brasil SA and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and OSX Brasil 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 OSX Brasil SA 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 OSX Brasil i.e., OSX Brasil and Netflix go up and down completely randomly.

Pair Corralation between OSX Brasil and Netflix

Assuming the 90 days trading horizon OSX Brasil SA is expected to under-perform the Netflix. In addition to that, OSX Brasil is 1.89 times more volatile than Netflix. It trades about -0.07 of its total potential returns per unit of risk. Netflix is currently generating about 0.15 per unit of volatility. If you would invest  11,908  in Netflix on April 23, 2025 and sell it today you would earn a total of  1,743  from holding Netflix or generate 14.64% return on investment over 90 days.

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

OSX Brasil SA  vs.  Netflix

OSX Brasil SA

Risk-Adjusted Performance

Very Weak

Over the last 90 days OSX Brasil SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Netflix

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Netflix are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Netflix sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with OSX Brasil and Netflix

The main advantage of trading using opposite OSX Brasil and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSX Brasil 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 OSX Brasil SA 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.