Correlation Between Canlan Ice and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Canlan Ice 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 Canlan Ice and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canlan Ice Sports and National CineMedia, you can compare the effects of market volatilities on Canlan Ice 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 Canlan Ice with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canlan Ice and National CineMedia.
Diversification Opportunities for Canlan Ice and National CineMedia
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Canlan and National is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Canlan Ice Sports and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and Canlan Ice 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 Canlan Ice Sports 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 Canlan Ice i.e., Canlan Ice and National CineMedia go up and down completely randomly.
Pair Corralation between Canlan Ice and National CineMedia
Assuming the 90 days horizon Canlan Ice Sports is expected to generate 0.07 times more return on investment than National CineMedia. However, Canlan Ice Sports is 14.66 times less risky than National CineMedia. It trades about 0.17 of its potential returns per unit of risk. National CineMedia is currently generating about 0.01 per unit of risk. If you would invest 292.00 in Canlan Ice Sports on August 30, 2024 and sell it today you would earn a total of 5.00 from holding Canlan Ice Sports or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canlan Ice Sports vs. National CineMedia
Performance |
| Timeline |
| Canlan Ice Sports |
| National CineMedia |
Canlan Ice and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canlan Ice and National CineMedia
The main advantage of trading using opposite Canlan Ice and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canlan Ice 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.| Canlan Ice vs. WiMi Hologram Cloud | Canlan Ice vs. Vita Coco | Canlan Ice vs. Constellation Brands Class | Canlan Ice vs. Radcom |
| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Impact Fusion International | National CineMedia vs. ZW Data Action |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |