Correlation Between Atlanta Braves and Cinemark Holdings
Can any of the company-specific risk be diversified away by investing in both Atlanta Braves 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 Atlanta Braves and Cinemark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanta Braves Holdings, and Cinemark Holdings, you can compare the effects of market volatilities on Atlanta Braves 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 Atlanta Braves with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanta Braves and Cinemark Holdings.
Diversification Opportunities for Atlanta Braves and Cinemark Holdings
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Atlanta and Cinemark is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Atlanta Braves Holdings, and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings and Atlanta Braves 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 Atlanta Braves Holdings, 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 Atlanta Braves i.e., Atlanta Braves and Cinemark Holdings go up and down completely randomly.
Pair Corralation between Atlanta Braves and Cinemark Holdings
Assuming the 90 days horizon Atlanta Braves Holdings, is expected to under-perform the Cinemark Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Atlanta Braves Holdings, is 1.56 times less risky than Cinemark Holdings. The stock trades about -0.03 of its potential returns per unit of risk. The Cinemark Holdings is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 2,966 in Cinemark Holdings on August 30, 2024 and sell it today you would earn a total of 452.00 from holding Cinemark Holdings or generate 15.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atlanta Braves Holdings, vs. Cinemark Holdings
Performance |
| Timeline |
| Atlanta Braves Holdings, |
| Cinemark Holdings |
Atlanta Braves and Cinemark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlanta Braves and Cinemark Holdings
The main advantage of trading using opposite Atlanta Braves and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanta Braves 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.| Atlanta Braves vs. Madison Square Garden | Atlanta Braves vs. Liberty Media | Atlanta Braves vs. Liberty Media | Atlanta Braves vs. Sphere Entertainment Co |
| Cinemark Holdings vs. News Corp B | Cinemark Holdings vs. Marcus | Cinemark Holdings vs. Liberty Media | Cinemark Holdings vs. Warner Music Group |
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.
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