Correlation Between Netflix and HUMANA
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By analyzing existing cross correlation between Netflix and HUMANA INC, you can compare the effects of market volatilities on Netflix and HUMANA 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 HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and HUMANA.
Diversification Opportunities for Netflix and HUMANA
Significant diversification
The 3 months correlation between Netflix and HUMANA is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 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 HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Netflix i.e., Netflix and HUMANA go up and down completely randomly.
Pair Corralation between Netflix and HUMANA
Given the investment horizon of 90 days Netflix is expected to generate 1.08 times more return on investment than HUMANA. However, Netflix is 1.08 times more volatile than HUMANA INC. It trades about 0.11 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.17 per unit of risk. If you would invest 68,384 in Netflix on June 29, 2024 and sell it today you would earn a total of 2,351 from holding Netflix or generate 3.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Netflix vs. HUMANA INC
Performance |
Timeline |
Netflix |
HUMANA INC |
Netflix and HUMANA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Netflix and HUMANA
The main advantage of trading using opposite Netflix and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.Netflix vs. Paramount Global Class | Netflix vs. Roku Inc | Netflix vs. Warner Bros Discovery | Netflix vs. AMC Entertainment Holdings |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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