Correlation Between JPM INDIAN and Cinemark Holdings
Can any of the company-specific risk be diversified away by investing in both JPM INDIAN and Cinemark Holdings 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 JPM INDIAN and Cinemark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JPM INDIAN INVT and Cinemark Holdings, you can compare the effects of market volatilities on JPM INDIAN and Cinemark Holdings 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 JPM INDIAN with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of JPM INDIAN and Cinemark Holdings.
Diversification Opportunities for JPM INDIAN and Cinemark Holdings
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between JPM and Cinemark is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding JPM INDIAN INVT and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings and JPM INDIAN 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 JPM INDIAN INVT are associated (or correlated) with Cinemark Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinemark Holdings has no effect on the direction of JPM INDIAN i.e., JPM INDIAN and Cinemark Holdings go up and down completely randomly.
Pair Corralation between JPM INDIAN and Cinemark Holdings
Assuming the 90 days horizon JPM INDIAN is expected to generate 3.99 times less return on investment than Cinemark Holdings. But when comparing it to its historical volatility, JPM INDIAN INVT is 1.64 times less risky than Cinemark Holdings. It trades about 0.16 of its potential returns per unit of risk. Cinemark Holdings is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 2,729 in Cinemark Holdings on August 31, 2024 and sell it today you would earn a total of 497.00 from holding Cinemark Holdings or generate 18.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JPM INDIAN INVT vs. Cinemark Holdings
Performance |
| Timeline |
| JPM INDIAN INVT |
| Cinemark Holdings |
JPM INDIAN and Cinemark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JPM INDIAN and Cinemark Holdings
The main advantage of trading using opposite JPM INDIAN and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JPM INDIAN position performs unexpectedly, Cinemark Holdings 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 Cinemark Holdings will offset losses from the drop in Cinemark Holdings' long position.| JPM INDIAN vs. Mizuho Financial Group | JPM INDIAN vs. DAIRY FARM INTL | JPM INDIAN vs. HYDROFARM HLD GRP | JPM INDIAN vs. Ameriprise Financial |
| Cinemark Holdings vs. Live Nation Entertainment | Cinemark Holdings vs. Fuji Media Holdings | Cinemark Holdings vs. Rai Way SpA | Cinemark Holdings vs. Superior Plus Corp |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |