Correlation Between Dolphin Entertainment and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Dolphin Entertainment 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 Dolphin Entertainment and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dolphin Entertainment and National CineMedia, you can compare the effects of market volatilities on Dolphin Entertainment 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 Dolphin Entertainment with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dolphin Entertainment and National CineMedia.
Diversification Opportunities for Dolphin Entertainment and National CineMedia
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dolphin and National is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Dolphin Entertainment and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and Dolphin Entertainment 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 Dolphin Entertainment 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 Dolphin Entertainment i.e., Dolphin Entertainment and National CineMedia go up and down completely randomly.
Pair Corralation between Dolphin Entertainment and National CineMedia
Given the investment horizon of 90 days Dolphin Entertainment is expected to under-perform the National CineMedia. In addition to that, Dolphin Entertainment is 1.42 times more volatile than National CineMedia. It trades about -0.07 of its total potential returns per unit of risk. National CineMedia is currently generating about 0.08 per unit of volatility. If you would invest 420.00 in National CineMedia on October 20, 2024 and sell it today you would earn a total of 260.00 from holding National CineMedia or generate 61.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dolphin Entertainment vs. National CineMedia
Performance |
| Timeline |
| Dolphin Entertainment |
| National CineMedia |
Dolphin Entertainment and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dolphin Entertainment and National CineMedia
The main advantage of trading using opposite Dolphin Entertainment and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dolphin Entertainment 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.| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Glory Star New | National CineMedia vs. Impact Fusion International |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |