Correlation Between National CineMedia and Blackrock Equity

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

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

Diversification Opportunities for National CineMedia and Blackrock Equity

0.0

Correlation Coefficient

National CineMedia  Blackrock Equity

Pay attention - limited upside

The 3 months correlation between National and Blackrock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Blackrock Equity Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Equity Dividend and National CineMedia 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 National CineMedia are associated (or correlated) with Blackrock Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Equity Dividend has no effect on the direction of National CineMedia i.e., National CineMedia and Blackrock Equity go up and down completely randomly.

Pair Corralation between National CineMedia and Blackrock Equity

If you would invest  669.00  in National CineMedia on October 21, 2024 and sell it today you would earn a total of  11.00  from holding National CineMedia or generate 1.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.5%
Values	Daily Returns

National CineMedia  vs.  Blackrock Equity Dividend

National CineMedia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days National CineMedia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, National CineMedia is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Blackrock Equity Dividend

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackrock Equity Dividend has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Blackrock Equity is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with National CineMedia and Blackrock Equity

The main advantage of trading using opposite National CineMedia and Blackrock Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Blackrock Equity 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 Blackrock Equity will offset losses from the drop in Blackrock Equity's long position.

The idea behind National CineMedia and Blackrock Equity Dividend 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.