Correlation Between Cinemark Holdings and Gold Fields
Can any of the company-specific risk be diversified away by investing in both Cinemark Holdings and Gold Fields 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 Gold Fields into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cinemark Holdings and Gold Fields Ltd, you can compare the effects of market volatilities on Cinemark Holdings and Gold Fields 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 Gold Fields. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinemark Holdings and Gold Fields.
Diversification Opportunities for Cinemark Holdings and Gold Fields
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cinemark and Gold is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cinemark Holdings and Gold Fields Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gold Fields 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 Gold Fields. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gold Fields has no effect on the direction of Cinemark Holdings i.e., Cinemark Holdings and Gold Fields go up and down completely randomly.
Pair Corralation between Cinemark Holdings and Gold Fields
Considering the 90-day investment horizon Cinemark Holdings is expected to generate 0.64 times more return on investment than Gold Fields. However, Cinemark Holdings is 1.55 times less risky than Gold Fields. It trades about 0.31 of its potential returns per unit of risk. Gold Fields Ltd is currently generating about -0.23 per unit of risk. If you would invest 2,937 in Cinemark Holdings on August 28, 2024 and sell it today you would earn a total of 388.00 from holding Cinemark Holdings or generate 13.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinemark Holdings vs. Gold Fields Ltd
Performance |
| Timeline |
| Cinemark Holdings |
| Gold Fields |
Cinemark Holdings and Gold Fields Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinemark Holdings and Gold Fields
The main advantage of trading using opposite Cinemark Holdings and Gold Fields positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinemark Holdings position performs unexpectedly, Gold Fields 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 Gold Fields will offset losses from the drop in Gold Fields' long position.| Cinemark Holdings vs. News Corp B | Cinemark Holdings vs. Marcus | Cinemark Holdings vs. Liberty Media | Cinemark Holdings vs. Warner Music Group |
| Gold Fields vs. Agnico Eagle Mines | Gold Fields vs. Kinross Gold | Gold Fields vs. Harmony Gold Mining | Gold Fields vs. Franco Nevada |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |