Correlation Between National CineMedia and Capital Clean
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Capital Clean 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 Capital Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Capital Clean Energy, you can compare the effects of market volatilities on National CineMedia and Capital Clean 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 Capital Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Capital Clean.
Diversification Opportunities for National CineMedia and Capital Clean
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between National and Capital is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Capital Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Clean Energy 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 Capital Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Clean Energy has no effect on the direction of National CineMedia i.e., National CineMedia and Capital Clean go up and down completely randomly.
Pair Corralation between National CineMedia and Capital Clean
Given the investment horizon of 90 days National CineMedia is expected to generate 1.62 times more return on investment than Capital Clean. However, National CineMedia is 1.62 times more volatile than Capital Clean Energy. It trades about 0.06 of its potential returns per unit of risk. Capital Clean Energy is currently generating about 0.06 per unit of risk. If you would invest 439.00 in National CineMedia on September 26, 2024 and sell it today you would earn a total of 221.00 from holding National CineMedia or generate 50.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
National CineMedia vs. Capital Clean Energy
Performance |
Timeline |
National CineMedia |
Capital Clean Energy |
National CineMedia and Capital Clean Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National CineMedia and Capital Clean
The main advantage of trading using opposite National CineMedia and Capital Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Capital Clean 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 Capital Clean will offset losses from the drop in Capital Clean's long position.National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Glory Star New | National CineMedia vs. Impact Fusion International |
Capital Clean vs. Pyxis Tankers | Capital Clean vs. Pacific Basin Shipping | Capital Clean vs. dAmico International Shipping | Capital Clean vs. Danaos |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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