Correlation Between National CineMedia and Quad Energy
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Quad Energy 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 Quad Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Quad Energy Corp, you can compare the effects of market volatilities on National CineMedia and Quad Energy 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 Quad Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Quad Energy.
Diversification Opportunities for National CineMedia and Quad Energy
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Quad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Quad Energy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Quad Energy 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 Quad Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quad Energy Corp has no effect on the direction of National CineMedia i.e., National CineMedia and Quad Energy go up and down completely randomly.
Pair Corralation between National CineMedia and Quad Energy
If you would invest 275.00 in National CineMedia on September 13, 2024 and sell it today you would earn a total of 470.00 from holding National CineMedia or generate 170.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. Quad Energy Corp
Performance |
| Timeline |
| National CineMedia |
| Quad Energy Corp |
National CineMedia and Quad Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Quad Energy
The main advantage of trading using opposite National CineMedia and Quad Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Quad Energy 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 Quad Energy will offset losses from the drop in Quad Energy'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 |
| Quad Energy vs. Evolution Petroleum | Quad Energy vs. Ring Energy | Quad Energy vs. Gran Tierra Energy | Quad Energy vs. Permian Resources |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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