Correlation Between Cinemark Holdings and Hollywood Intermediate
Can any of the company-specific risk be diversified away by investing in both Cinemark Holdings and Hollywood Intermediate 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 Hollywood Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cinemark Holdings and Hollywood Intermediate, you can compare the effects of market volatilities on Cinemark Holdings and Hollywood Intermediate 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 Hollywood Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinemark Holdings and Hollywood Intermediate.
Diversification Opportunities for Cinemark Holdings and Hollywood Intermediate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cinemark and Hollywood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cinemark Holdings and Hollywood Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollywood Intermediate 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 Hollywood Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollywood Intermediate has no effect on the direction of Cinemark Holdings i.e., Cinemark Holdings and Hollywood Intermediate go up and down completely randomly.
Pair Corralation between Cinemark Holdings and Hollywood Intermediate
If you would invest 2,937 in Cinemark Holdings on October 26, 2024 and sell it today you would earn a total of 8.00 from holding Cinemark Holdings or generate 0.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinemark Holdings vs. Hollywood Intermediate
Performance |
| Timeline |
| Cinemark Holdings |
| Hollywood Intermediate |
Cinemark Holdings and Hollywood Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinemark Holdings and Hollywood Intermediate
The main advantage of trading using opposite Cinemark Holdings and Hollywood Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinemark Holdings position performs unexpectedly, Hollywood Intermediate 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 Hollywood Intermediate will offset losses from the drop in Hollywood Intermediate's long position.| Cinemark Holdings vs. News Corp B | Cinemark Holdings vs. Marcus | Cinemark Holdings vs. Liberty Media | Cinemark Holdings vs. Warner Music Group |
| Hollywood Intermediate vs. AMC Entertainment Holdings | Hollywood Intermediate vs. Cinemark Holdings | Hollywood Intermediate vs. Roku Inc | Hollywood Intermediate vs. Netflix |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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