Correlation Between National CineMedia and Iskenderun Demir

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

By analyzing existing cross correlation between National CineMedia and Iskenderun Demir Ve, you can compare the effects of market volatilities on National CineMedia and Iskenderun Demir 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 Iskenderun Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Iskenderun Demir.

Diversification Opportunities for National CineMedia and Iskenderun Demir

0.0

Correlation Coefficient

National CineMedia  Iskenderun Demir

Pay attention - limited upside

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

Pair Corralation between National CineMedia and Iskenderun Demir

If you would invest (100.00) in Iskenderun Demir Ve on October 25, 2024 and sell it today you would earn a total of  100.00  from holding Iskenderun Demir Ve or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

National CineMedia  vs.  Iskenderun Demir Ve

National CineMedia

Risk-Adjusted Performance

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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.

Iskenderun Demir

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Iskenderun Demir Ve has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable primary indicators, Iskenderun Demir is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with National CineMedia and Iskenderun Demir

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

The idea behind National CineMedia and Iskenderun Demir Ve 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.