Correlation Between XL Fleet and National CineMedia
Can any of the company-specific risk be diversified away by investing in both XL Fleet and National CineMedia 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 XL Fleet and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between XL Fleet Corp and National CineMedia, you can compare the effects of market volatilities on XL Fleet and National CineMedia 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 XL Fleet with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of XL Fleet and National CineMedia.
Diversification Opportunities for XL Fleet and National CineMedia
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between XL Fleet and National is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding XL Fleet Corp and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and XL Fleet 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 XL Fleet Corp are associated (or correlated) with National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of XL Fleet i.e., XL Fleet and National CineMedia go up and down completely randomly.
Pair Corralation between XL Fleet and National CineMedia
If you would invest 413.00 in National CineMedia on September 15, 2024 and sell it today you would earn a total of 324.00 from holding National CineMedia or generate 78.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 0.37% |
Values | Daily Returns |
XL Fleet Corp vs. National CineMedia
Performance |
Timeline |
XL Fleet Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National CineMedia |
XL Fleet and National CineMedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XL Fleet and National CineMedia
The main advantage of trading using opposite XL Fleet and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XL Fleet position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia's long position.XL Fleet vs. National CineMedia | XL Fleet vs. Fluent Inc | XL Fleet vs. Marchex | XL Fleet vs. Organic Sales and |
National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Glory Star New | National CineMedia vs. Impact Fusion International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |