Correlation Between Inflection Point and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Inflection Point 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 Inflection Point and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflection Point Acquisition and National CineMedia, you can compare the effects of market volatilities on Inflection Point 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 Inflection Point with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflection Point and National CineMedia.
Diversification Opportunities for Inflection Point and National CineMedia
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Inflection and National is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and Inflection Point 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 Inflection Point 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 Inflection Point i.e., Inflection Point and National CineMedia go up and down completely randomly.
Pair Corralation between Inflection Point and National CineMedia
Assuming the 90 days horizon Inflection Point Acquisition is expected to generate 1.36 times more return on investment than National CineMedia. However, Inflection Point is 1.36 times more volatile than National CineMedia. It trades about 0.18 of its potential returns per unit of risk. National CineMedia is currently generating about 0.07 per unit of risk. If you would invest 1,075 in Inflection Point Acquisition on September 12, 2024 and sell it today you would earn a total of 415.00 from holding Inflection Point Acquisition or generate 38.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inflection Point Acquisition vs. National CineMedia
Performance |
| Timeline |
| Inflection Point Acq |
| National CineMedia |
Inflection Point and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflection Point and National CineMedia
The main advantage of trading using opposite Inflection Point and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point 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.| Inflection Point vs. 51Talk Online Education | Inflection Point vs. CarsalesCom Ltd ADR | Inflection Point vs. Osaka Steel Co, | Inflection Point vs. Marchex |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |