Correlation Between VanEck Vectors and Netflix
Can any of the company-specific risk be diversified away by investing in both VanEck Vectors 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 VanEck Vectors and Netflix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VanEck Vectors Moodys and Netflix, you can compare the effects of market volatilities on VanEck Vectors 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 VanEck Vectors with a short position of Netflix. Check out your portfolio center. Please also check ongoing floating volatility patterns of VanEck Vectors and Netflix.
Diversification Opportunities for VanEck Vectors and Netflix
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VanEck and Netflix is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding VanEck Vectors Moodys and Netflix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Netflix and VanEck Vectors 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 VanEck Vectors Moodys 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 VanEck Vectors i.e., VanEck Vectors and Netflix go up and down completely randomly.
Pair Corralation between VanEck Vectors and Netflix
Given the investment horizon of 90 days VanEck Vectors is expected to generate 2.22 times less return on investment than Netflix. But when comparing it to its historical volatility, VanEck Vectors Moodys is 6.56 times less risky than Netflix. It trades about 0.07 of its potential returns per unit of risk. Netflix is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 9,366 in Netflix on September 7, 2025 and sell it today you would earn a total of 658.00 from holding Netflix or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VanEck Vectors Moodys vs. Netflix
Performance |
| Timeline |
| VanEck Vectors Moodys |
| Netflix |
VanEck Vectors and Netflix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VanEck Vectors and Netflix
The main advantage of trading using opposite VanEck Vectors and Netflix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VanEck Vectors 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.| VanEck Vectors vs. Xtrackers California Municipal | VanEck Vectors vs. Vanguard ESG Corporate | VanEck Vectors vs. Vanguard Intermediate Term Corporate | VanEck Vectors vs. Vanguard Long Term Corporate |
| Netflix vs. FT Vest Equity | Netflix vs. Zillow Group Class | Netflix vs. Northern Lights | Netflix vs. VanEck Vectors Moodys |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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