Correlation Between Cinemark Holdings and Able View
Can any of the company-specific risk be diversified away by investing in both Cinemark Holdings and Able View 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 Cinemark Holdings and Able View into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cinemark Holdings and Able View Global, you can compare the effects of market volatilities on Cinemark Holdings and Able View 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 Cinemark Holdings with a short position of Able View. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinemark Holdings and Able View.
Diversification Opportunities for Cinemark Holdings and Able View
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cinemark and Able is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cinemark Holdings and Able View Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Able View Global and Cinemark Holdings 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 Cinemark Holdings are associated (or correlated) with Able View. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Able View Global has no effect on the direction of Cinemark Holdings i.e., Cinemark Holdings and Able View go up and down completely randomly.
Pair Corralation between Cinemark Holdings and Able View
Considering the 90-day investment horizon Cinemark Holdings is expected to under-perform the Able View. But the stock apears to be less risky and, when comparing its historical volatility, Cinemark Holdings is 8.76 times less risky than Able View. The stock trades about -0.4 of its potential returns per unit of risk. The Able View Global is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 77.00 in Able View Global on November 3, 2024 and sell it today you would earn a total of 28.00 from holding Able View Global or generate 36.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinemark Holdings vs. Able View Global
Performance |
| Timeline |
| Cinemark Holdings |
| Able View Global |
Cinemark Holdings and Able View Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinemark Holdings and Able View
The main advantage of trading using opposite Cinemark Holdings and Able View positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinemark Holdings position performs unexpectedly, Able View 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 Able View will offset losses from the drop in Able View's long position.| Cinemark Holdings vs. Liberty Media | Cinemark Holdings vs. Atlanta Braves Holdings, | Cinemark Holdings vs. News Corp B | Cinemark Holdings vs. News Corp A |
| Able View vs. Centessa Pharmaceuticals PLC | Able View vs. Valneva SE ADR | Able View vs. Analog Devices | Able View vs. Senmiao Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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