Correlation Between National CineMedia and Boston Omaha
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Boston Omaha 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 National CineMedia and Boston Omaha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Boston Omaha Corp, you can compare the effects of market volatilities on National CineMedia and Boston Omaha 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 National CineMedia with a short position of Boston Omaha. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Boston Omaha.
Diversification Opportunities for National CineMedia and Boston Omaha
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Boston is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Boston Omaha Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boston Omaha Corp and National CineMedia 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 National CineMedia are associated (or correlated) with Boston Omaha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boston Omaha Corp has no effect on the direction of National CineMedia i.e., National CineMedia and Boston Omaha go up and down completely randomly.
Pair Corralation between National CineMedia and Boston Omaha
Given the investment horizon of 90 days National CineMedia is expected to generate 1.71 times less return on investment than Boston Omaha. In addition to that, National CineMedia is 1.74 times more volatile than Boston Omaha Corp. It trades about 0.03 of its total potential returns per unit of risk. Boston Omaha Corp is currently generating about 0.1 per unit of volatility. If you would invest 1,432 in Boston Omaha Corp on October 21, 2024 and sell it today you would earn a total of 46.00 from holding Boston Omaha Corp or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. Boston Omaha Corp
Performance |
| Timeline |
| National CineMedia |
| Boston Omaha Corp |
National CineMedia and Boston Omaha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Boston Omaha
The main advantage of trading using opposite National CineMedia and Boston Omaha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Boston Omaha 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 Boston Omaha will offset losses from the drop in Boston Omaha's long position.| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Glory Star New | National CineMedia vs. Impact Fusion International |
| Boston Omaha vs. Integral Ad Science | Boston Omaha vs. Cardlytics | Boston Omaha vs. Cimpress NV | Boston Omaha vs. QuinStreet |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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