Correlation Between International Media and National CineMedia
Can any of the company-specific risk be diversified away by investing in both International Media 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 International Media and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Media Acquisition and National CineMedia, you can compare the effects of market volatilities on International Media 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 International Media with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Media and National CineMedia.
Diversification Opportunities for International Media and National CineMedia
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between International and National is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding International Media Acquisitio and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and International Media 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 International Media Acquisition 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 International Media i.e., International Media and National CineMedia go up and down completely randomly.
Pair Corralation between International Media and National CineMedia
If you would invest 676.00 in National CineMedia on September 13, 2024 and sell it today you would earn a total of 69.00 from holding National CineMedia or generate 10.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
International Media Acquisitio vs. National CineMedia
Performance |
| Timeline |
| International Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| National CineMedia |
International Media and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Media and National CineMedia
The main advantage of trading using opposite International Media and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Media 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.| International Media vs. Nike Inc | International Media vs. Citi Trends | International Media vs. Braskem SA Class | International Media vs. Codexis |
| 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.
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