Correlation Between CannaGlobal Acquisition and National CineMedia
Can any of the company-specific risk be diversified away by investing in both CannaGlobal 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 CannaGlobal 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 CannaGlobal Acquisition Corp and National CineMedia, you can compare the effects of market volatilities on CannaGlobal 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 CannaGlobal Acquisition with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CannaGlobal Acquisition and National CineMedia.
Diversification Opportunities for CannaGlobal Acquisition and National CineMedia
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between CannaGlobal and National is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding CannaGlobal 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 CannaGlobal 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 CannaGlobal 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 CannaGlobal Acquisition i.e., CannaGlobal Acquisition and National CineMedia go up and down completely randomly.
Pair Corralation between CannaGlobal Acquisition and National CineMedia
If you would invest 1,092 in CannaGlobal Acquisition Corp on September 1, 2024 and sell it today you would earn a total of 0.00 from holding CannaGlobal Acquisition Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
CannaGlobal Acquisition Corp vs. National CineMedia
Performance |
| Timeline |
| CannaGlobal Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| National CineMedia |
CannaGlobal Acquisition and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CannaGlobal Acquisition and National CineMedia
The main advantage of trading using opposite CannaGlobal Acquisition and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CannaGlobal 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.| CannaGlobal Acquisition vs. Vishay Intertechnology | CannaGlobal Acquisition vs. Elmos Semiconductor SE | CannaGlobal Acquisition vs. Valens | CannaGlobal Acquisition vs. ACG Metals Limited |
| National CineMedia vs. Mirriad Advertising plc | National CineMedia vs. INEO Tech Corp | National CineMedia vs. Kidoz Inc | National CineMedia vs. Marchex |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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