Correlation Between Perusahaan Perseroan and Netflix

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

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

Diversification Opportunities for Perusahaan Perseroan and Netflix

0.84

Correlation Coefficient

Perusahaan Perseroan  Netflix

Very poor diversification

The 3 months correlation between Perusahaan and Netflix is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Perusahaan Perseroan PT and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and Perusahaan Perseroan 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 Perusahaan Perseroan PT 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 Perusahaan Perseroan i.e., Perusahaan Perseroan and Netflix go up and down completely randomly.

Pair Corralation between Perusahaan Perseroan and Netflix

Assuming the 90 days horizon Perusahaan Perseroan PT is expected to generate 1.25 times more return on investment than Netflix. However, Perusahaan Perseroan is 1.25 times more volatile than Netflix. It trades about 0.15 of its potential returns per unit of risk. Netflix is currently generating about 0.15 per unit of risk. If you would invest  1,215  in Perusahaan Perseroan PT on April 20, 2025 and sell it today you would earn a total of  245.00  from holding Perusahaan Perseroan PT or generate 20.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Perusahaan Perseroan PT  vs.  Netflix

Perusahaan Perseroan

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Perusahaan Perseroan PT are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Perusahaan Perseroan reported solid returns over the last few months and may actually be approaching a breakup point.

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 nearly fragile basic indicators, Netflix reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Perusahaan Perseroan and Netflix

The main advantage of trading using opposite Perusahaan Perseroan and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Perusahaan Perseroan 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 Perusahaan Perseroan PT 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.