Correlation Between Eshallgo and Cinemark Holdings
Can any of the company-specific risk be diversified away by investing in both Eshallgo 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 Eshallgo and Cinemark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eshallgo Class A and Cinemark Holdings, you can compare the effects of market volatilities on Eshallgo 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 Eshallgo with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and Cinemark Holdings.
Diversification Opportunities for Eshallgo and Cinemark Holdings
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Eshallgo and Cinemark is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings and Eshallgo 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 Eshallgo Class A 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 Eshallgo i.e., Eshallgo and Cinemark Holdings go up and down completely randomly.
Pair Corralation between Eshallgo and Cinemark Holdings
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 4.08 times more return on investment than Cinemark Holdings. However, Eshallgo is 4.08 times more volatile than Cinemark Holdings. It trades about 0.4 of its potential returns per unit of risk. Cinemark Holdings is currently generating about 0.3 per unit of risk. If you would invest 211.00 in Eshallgo Class A on August 24, 2024 and sell it today you would earn a total of 188.00 from holding Eshallgo Class A or generate 89.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eshallgo Class A vs. Cinemark Holdings
Performance |
| Timeline |
| Eshallgo Class A |
| Cinemark Holdings |
Eshallgo and Cinemark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and Cinemark Holdings
The main advantage of trading using opposite Eshallgo and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo 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.| Eshallgo vs. Shake Shack | Eshallgo vs. Lululemon Athletica | Eshallgo vs. Playtika Holding Corp | Eshallgo vs. Haverty Furniture Companies |
| Cinemark Holdings vs. News Corp B | Cinemark Holdings vs. Marcus | Cinemark Holdings vs. Liberty Media | Cinemark Holdings vs. Warner Music Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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