Correlation Between Bowen Acquisition and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Bowen Acquisition 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 Bowen Acquisition and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bowen Acquisition Corp and National CineMedia, you can compare the effects of market volatilities on Bowen Acquisition 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 Bowen Acquisition with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bowen Acquisition and National CineMedia.
Diversification Opportunities for Bowen Acquisition and National CineMedia
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bowen and National is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bowen Acquisition Corp and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and Bowen Acquisition 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 Bowen Acquisition 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 Bowen Acquisition i.e., Bowen Acquisition and National CineMedia go up and down completely randomly.
Pair Corralation between Bowen Acquisition and National CineMedia
Given the investment horizon of 90 days Bowen Acquisition Corp is expected to generate 0.12 times more return on investment than National CineMedia. However, Bowen Acquisition Corp is 8.1 times less risky than National CineMedia. It trades about -0.07 of its potential returns per unit of risk. National CineMedia is currently generating about -0.46 per unit of risk. If you would invest 1,095 in Bowen Acquisition Corp on October 14, 2024 and sell it today you would lose (4.00) from holding Bowen Acquisition Corp or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bowen Acquisition Corp vs. National CineMedia
Performance |
| Timeline |
| Bowen Acquisition Corp |
| National CineMedia |
Bowen Acquisition and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bowen Acquisition and National CineMedia
The main advantage of trading using opposite Bowen Acquisition and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bowen Acquisition 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.| Bowen Acquisition vs. Vishay Precision Group | Bowen Acquisition vs. Tower Semiconductor | Bowen Acquisition vs. BioNTech SE | Bowen Acquisition vs. Valneva SE ADR |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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