Correlation Between National CineMedia and Wicket Gaming

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

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

Diversification Opportunities for National CineMedia and Wicket Gaming

0.0

Correlation Coefficient

National CineMedia  Wicket Gaming

Pay attention - limited upside

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

Pair Corralation between National CineMedia and Wicket Gaming

If you would invest (100.00) in Wicket Gaming AB on December 4, 2024 and sell it today you would earn a total of  100.00  from holding Wicket Gaming AB 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.  Wicket Gaming AB

National CineMedia

Risk-Adjusted Performance

Very Weak

Over the last 90 days National CineMedia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Wicket Gaming AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Wicket Gaming AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Wicket Gaming is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with National CineMedia and Wicket Gaming

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

The idea behind National CineMedia and Wicket Gaming AB 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.