Correlation Between Whirlpool and Netflix

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

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

Diversification Opportunities for Whirlpool and Netflix

0.79

Correlation Coefficient

Whirlpool  Netflix

Poor diversification

The 3 months correlation between Whirlpool and Netflix is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Whirlpool SA and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and Whirlpool 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 Whirlpool 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 Whirlpool i.e., Whirlpool and Netflix go up and down completely randomly.

Pair Corralation between Whirlpool and Netflix

Assuming the 90 days trading horizon Whirlpool SA is expected to generate 1.93 times more return on investment than Netflix. However, Whirlpool is 1.93 times more volatile than Netflix. It trades about 0.04 of its potential returns per unit of risk. Netflix is currently generating about 0.05 per unit of risk. If you would invest  396.00  in Whirlpool SA on April 25, 2025 and sell it today you would earn a total of  22.00  from holding Whirlpool SA or generate 5.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Whirlpool SA  vs.  Netflix

Whirlpool SA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Whirlpool SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Whirlpool may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Netflix

Risk-Adjusted Performance

Insignificant

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. Despite somewhat strong essential indicators, Netflix is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Whirlpool and Netflix

The main advantage of trading using opposite Whirlpool and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whirlpool 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 Whirlpool 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..