Correlation Between Gold Fields and Cinemark Holdings

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Gold Fields 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 Gold Fields and Cinemark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Fields Ltd and Cinemark Holdings, you can compare the effects of market volatilities on Gold Fields 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 Gold Fields with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Fields and Cinemark Holdings.

Diversification Opportunities for Gold Fields and Cinemark Holdings

-0.07
  Correlation Coefficient

Good diversification

The 3 months correlation between Gold and Cinemark is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Gold Fields Ltd and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings and Gold Fields 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 Gold Fields Ltd 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 Gold Fields i.e., Gold Fields and Cinemark Holdings go up and down completely randomly.

Pair Corralation between Gold Fields and Cinemark Holdings

Considering the 90-day investment horizon Gold Fields is expected to generate 5.47 times less return on investment than Cinemark Holdings. In addition to that, Gold Fields is 1.5 times more volatile than Cinemark Holdings. It trades about 0.02 of its total potential returns per unit of risk. Cinemark Holdings is currently generating about 0.17 per unit of volatility. If you would invest  1,446  in Cinemark Holdings on August 24, 2024 and sell it today you would earn a total of  1,778  from holding Cinemark Holdings or generate 122.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Gold Fields Ltd  vs.  Cinemark Holdings

 Performance 
       Timeline  
Gold Fields 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Gold Fields Ltd are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating technical and fundamental indicators, Gold Fields may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Cinemark Holdings 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Cinemark Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Cinemark Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.

Gold Fields and Cinemark Holdings Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Gold Fields and Cinemark Holdings

The main advantage of trading using opposite Gold Fields and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Fields 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.
The idea behind Gold Fields Ltd and Cinemark Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.

Other Complementary Tools

Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Commodity Directory
Find actively traded commodities issued by global exchanges
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes