Correlation Between Carnegie Clean and Cinemark Holdings
Can any of the company-specific risk be diversified away by investing in both Carnegie Clean and Cinemark Holdings 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 Carnegie Clean and Cinemark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carnegie Clean Energy and Cinemark Holdings, you can compare the effects of market volatilities on Carnegie Clean and Cinemark Holdings 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 Carnegie Clean with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carnegie Clean and Cinemark Holdings.
Diversification Opportunities for Carnegie Clean and Cinemark Holdings
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Carnegie and Cinemark is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Carnegie Clean Energy and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings and Carnegie Clean 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 Carnegie Clean Energy are associated (or correlated) with Cinemark Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinemark Holdings has no effect on the direction of Carnegie Clean i.e., Carnegie Clean and Cinemark Holdings go up and down completely randomly.
Pair Corralation between Carnegie Clean and Cinemark Holdings
Assuming the 90 days trading horizon Carnegie Clean Energy is expected to generate 5.22 times more return on investment than Cinemark Holdings. However, Carnegie Clean is 5.22 times more volatile than Cinemark Holdings. It trades about 0.03 of its potential returns per unit of risk. Cinemark Holdings is currently generating about -0.29 per unit of risk. If you would invest 2.10 in Carnegie Clean Energy on October 25, 2024 and sell it today you would earn a total of 0.00 from holding Carnegie Clean Energy or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carnegie Clean Energy vs. Cinemark Holdings
Performance |
| Timeline |
| Carnegie Clean Energy |
| Cinemark Holdings |
Carnegie Clean and Cinemark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carnegie Clean and Cinemark Holdings
The main advantage of trading using opposite Carnegie Clean and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carnegie Clean position performs unexpectedly, Cinemark Holdings 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 Cinemark Holdings will offset losses from the drop in Cinemark Holdings' long position.| Carnegie Clean vs. CARSALESCOM | Carnegie Clean vs. YATRA ONLINE DL 0001 | Carnegie Clean vs. Lamar Advertising | Carnegie Clean vs. Tencent Music Entertainment |
| Cinemark Holdings vs. MAGIC SOFTWARE ENTR | Cinemark Holdings vs. Easy Software AG | Cinemark Holdings vs. COMPUTERSHARE | Cinemark Holdings vs. Unity Software |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |