Correlation Between MAG SILVER and Cinemark Holdings
Can any of the company-specific risk be diversified away by investing in both MAG SILVER 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 MAG SILVER and Cinemark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAG SILVER and Cinemark Holdings, you can compare the effects of market volatilities on MAG SILVER 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 MAG SILVER with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAG SILVER and Cinemark Holdings.
Diversification Opportunities for MAG SILVER and Cinemark Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MAG and Cinemark is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding MAG SILVER and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings and MAG SILVER 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 MAG SILVER 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 MAG SILVER i.e., MAG SILVER and Cinemark Holdings go up and down completely randomly.
Pair Corralation between MAG SILVER and Cinemark Holdings
Assuming the 90 days trading horizon MAG SILVER is expected to generate 2.48 times more return on investment than Cinemark Holdings. However, MAG SILVER is 2.48 times more volatile than Cinemark Holdings. It trades about 0.19 of its potential returns per unit of risk. Cinemark Holdings is currently generating about -0.29 per unit of risk. If you would invest 1,332 in MAG SILVER on October 25, 2024 and sell it today you would earn a total of 113.00 from holding MAG SILVER or generate 8.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAG SILVER vs. Cinemark Holdings
Performance |
| Timeline |
| MAG SILVER |
| Cinemark Holdings |
MAG SILVER and Cinemark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAG SILVER and Cinemark Holdings
The main advantage of trading using opposite MAG SILVER and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAG SILVER 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.| MAG SILVER vs. Summit Hotel Properties | MAG SILVER vs. Tower Semiconductor | MAG SILVER vs. UNIVMUSIC GRPADR050 | MAG SILVER vs. BE Semiconductor Industries |
| Cinemark Holdings vs. MAGIC SOFTWARE ENTR | Cinemark Holdings vs. Easy Software AG | Cinemark Holdings vs. COMPUTERSHARE | Cinemark Holdings vs. Unity Software |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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