Correlation Between Netflix and Life Banc
Can any of the company-specific risk be diversified away by investing in both Netflix and Life Banc 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 Netflix and Life Banc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix Inc CDR and Life Banc Split, you can compare the effects of market volatilities on Netflix and Life Banc 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 Life Banc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and Life Banc.
Diversification Opportunities for Netflix and Life Banc
Pay attention - limited upside
The 3 months correlation between Netflix and Life is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Netflix Inc CDR and Life Banc Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Life Banc Split 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 Inc CDR are associated (or correlated) with Life Banc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Life Banc Split has no effect on the direction of Netflix i.e., Netflix and Life Banc go up and down completely randomly.
Pair Corralation between Netflix and Life Banc
Assuming the 90 days trading horizon Netflix Inc CDR is expected to under-perform the Life Banc. In addition to that, Netflix is 1.83 times more volatile than Life Banc Split. It trades about -0.08 of its total potential returns per unit of risk. Life Banc Split is currently generating about 0.3 per unit of volatility. If you would invest 889.00 in Life Banc Split on September 3, 2025 and sell it today you would earn a total of 212.00 from holding Life Banc Split or generate 23.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix Inc CDR vs. Life Banc Split
Performance |
| Timeline |
| Netflix Inc CDR |
| Life Banc Split |
Netflix and Life Banc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and Life Banc
The main advantage of trading using opposite Netflix and Life Banc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, Life Banc 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 Life Banc will offset losses from the drop in Life Banc's long position.| Netflix vs. Bird Construction | Netflix vs. Enduro Metals Corp | Netflix vs. Arbor Metals Corp | Netflix vs. Canaf Investments |
| Life Banc vs. Air Canada | Life Banc vs. NeXGold Mining Corp | Life Banc vs. Champion Iron | Life Banc vs. Algoma Steel Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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