Correlation Between National CineMedia and Rand Capital

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Rand Capital 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 Rand Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Rand Capital Corp, you can compare the effects of market volatilities on National CineMedia and Rand Capital 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 Rand Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Rand Capital.

Diversification Opportunities for National CineMedia and Rand Capital

0.17
  Correlation Coefficient

Average diversification

The 3 months correlation between National and Rand is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Rand Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rand Capital Corp 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 Rand Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rand Capital Corp has no effect on the direction of National CineMedia i.e., National CineMedia and Rand Capital go up and down completely randomly.

Pair Corralation between National CineMedia and Rand Capital

Given the investment horizon of 90 days National CineMedia is expected to generate 1.11 times less return on investment than Rand Capital. In addition to that, National CineMedia is 1.01 times more volatile than Rand Capital Corp. It trades about 0.13 of its total potential returns per unit of risk. Rand Capital Corp is currently generating about 0.15 per unit of volatility. If you would invest  1,125  in Rand Capital Corp on September 27, 2024 and sell it today you would earn a total of  687.00  from holding Rand Capital Corp or generate 61.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.4%
ValuesDaily Returns

National CineMedia  vs.  Rand Capital Corp

 Performance 
       Timeline  
National CineMedia 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days National CineMedia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's primary indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.
Rand Capital Corp 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Rand Capital Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Rand Capital exhibited solid returns over the last few months and may actually be approaching a breakup point.

National CineMedia and Rand Capital Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with National CineMedia and Rand Capital

The main advantage of trading using opposite National CineMedia and Rand Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Rand Capital 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 Rand Capital will offset losses from the drop in Rand Capital's long position.
The idea behind National CineMedia and Rand Capital Corp 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.
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

Other Complementary Tools

Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency