Correlation Between Fluent and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Fluent 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 Fluent and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fluent Inc and National CineMedia, you can compare the effects of market volatilities on Fluent 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 Fluent with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fluent and National CineMedia.
Diversification Opportunities for Fluent and National CineMedia
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Fluent and National is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Fluent Inc and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and Fluent 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 Fluent Inc 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 Fluent i.e., Fluent and National CineMedia go up and down completely randomly.
Pair Corralation between Fluent and National CineMedia
Given the investment horizon of 90 days Fluent Inc is expected to generate 0.99 times more return on investment than National CineMedia. However, Fluent Inc is 1.01 times less risky than National CineMedia. It trades about 0.09 of its potential returns per unit of risk. National CineMedia is currently generating about 0.04 per unit of risk. If you would invest 268.00 in Fluent Inc on October 23, 2024 and sell it today you would earn a total of 12.00 from holding Fluent Inc or generate 4.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Fluent Inc vs. National CineMedia
Performance |
| Timeline |
| Fluent Inc |
| National CineMedia |
Fluent and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fluent and National CineMedia
The main advantage of trading using opposite Fluent and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fluent 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.| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |