Correlation Between China Tontine and National CineMedia
Can any of the company-specific risk be diversified away by investing in both China Tontine 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 China Tontine and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Tontine Wines and National CineMedia, you can compare the effects of market volatilities on China Tontine 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 China Tontine with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Tontine and National CineMedia.
Diversification Opportunities for China Tontine and National CineMedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Tontine Wines and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and China Tontine 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 China Tontine Wines 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 China Tontine i.e., China Tontine and National CineMedia go up and down completely randomly.
Pair Corralation between China Tontine and National CineMedia
If you would invest 7.10 in China Tontine Wines on August 28, 2024 and sell it today you would earn a total of 0.00 from holding China Tontine Wines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
China Tontine Wines vs. National CineMedia
Performance |
| Timeline |
| China Tontine Wines |
| National CineMedia |
China Tontine and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Tontine and National CineMedia
The main advantage of trading using opposite China Tontine and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Tontine 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.| China Tontine vs. GameStop Corp | China Tontine vs. Arrow Financial | China Tontine vs. Juniata Valley Financial | China Tontine vs. Playtika Holding Corp |
| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Impact Fusion International | National CineMedia vs. ZW Data Action |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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