Correlation Between Netflix and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Netflix and IShares MSCI 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 IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Netflix and iShares MSCI Intl, you can compare the effects of market volatilities on Netflix and IShares MSCI 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Netflix and IShares MSCI.
Diversification Opportunities for Netflix and IShares MSCI
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Netflix and IShares is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Netflix and iShares MSCI Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI Intl 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI Intl has no effect on the direction of Netflix i.e., Netflix and IShares MSCI go up and down completely randomly.
Pair Corralation between Netflix and IShares MSCI
Given the investment horizon of 90 days Netflix is expected to under-perform the IShares MSCI. In addition to that, Netflix is 2.83 times more volatile than iShares MSCI Intl. It trades about -0.08 of its total potential returns per unit of risk. iShares MSCI Intl is currently generating about 0.09 per unit of volatility. If you would invest 4,313 in iShares MSCI Intl on August 18, 2025 and sell it today you would earn a total of 165.00 from holding iShares MSCI Intl or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Netflix vs. iShares MSCI Intl
Performance |
| Timeline |
| Netflix |
| iShares MSCI Intl |
Netflix and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Netflix and IShares MSCI
The main advantage of trading using opposite Netflix and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Netflix position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| Netflix vs. Walt Disney | Netflix vs. Warner Bros Discovery | Netflix vs. Imax Corp | Netflix vs. Warner Music Group |
| IShares MSCI vs. SPDR Portfolio SP | IShares MSCI vs. iShares Preferred and | IShares MSCI vs. iShares Russell 2000 | IShares MSCI vs. iShares MSCI Emerging |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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