Correlation Between Cinemark Holdings and Criteo Sa
Can any of the company-specific risk be diversified away by investing in both Cinemark Holdings and Criteo Sa 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 Criteo Sa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cinemark Holdings and Criteo Sa, you can compare the effects of market volatilities on Cinemark Holdings and Criteo Sa 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 Criteo Sa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinemark Holdings and Criteo Sa.
Diversification Opportunities for Cinemark Holdings and Criteo Sa
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cinemark and Criteo is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cinemark Holdings and Criteo Sa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Criteo Sa 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 Criteo Sa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Criteo Sa has no effect on the direction of Cinemark Holdings i.e., Cinemark Holdings and Criteo Sa go up and down completely randomly.
Pair Corralation between Cinemark Holdings and Criteo Sa
Considering the 90-day investment horizon Cinemark Holdings is expected to generate 0.54 times more return on investment than Criteo Sa. However, Cinemark Holdings is 1.86 times less risky than Criteo Sa. It trades about 0.29 of its potential returns per unit of risk. Criteo Sa is currently generating about -0.24 per unit of risk. If you would invest 2,425 in Cinemark Holdings on January 13, 2025 and sell it today you would earn a total of 368.00 from holding Cinemark Holdings or generate 15.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinemark Holdings vs. Criteo Sa
Performance |
| Timeline |
| Cinemark Holdings |
| Criteo Sa |
Cinemark Holdings and Criteo Sa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinemark Holdings and Criteo Sa
The main advantage of trading using opposite Cinemark Holdings and Criteo Sa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinemark Holdings position performs unexpectedly, Criteo Sa 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 Criteo Sa will offset losses from the drop in Criteo Sa's long position.| Cinemark Holdings vs. News Corp B | Cinemark Holdings vs. Marcus | Cinemark Holdings vs. Liberty Media | Cinemark Holdings vs. Warner Music Group |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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