Correlation Between National CineMedia and CLST Holdings
Can any of the company-specific risk be diversified away by investing in both National CineMedia and CLST 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 National CineMedia and CLST Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and CLST Holdings, you can compare the effects of market volatilities on National CineMedia and CLST 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 National CineMedia with a short position of CLST Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and CLST Holdings.
Diversification Opportunities for National CineMedia and CLST Holdings
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and CLST is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and CLST Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLST Holdings 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 CLST Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLST Holdings has no effect on the direction of National CineMedia i.e., National CineMedia and CLST Holdings go up and down completely randomly.
Pair Corralation between National CineMedia and CLST Holdings
Given the investment horizon of 90 days National CineMedia is expected to generate 137.7 times less return on investment than CLST Holdings. But when comparing it to its historical volatility, National CineMedia is 16.38 times less risky than CLST Holdings. It trades about 0.03 of its potential returns per unit of risk. CLST Holdings is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2.10 in CLST Holdings on October 21, 2024 and sell it today you would earn a total of 2.70 from holding CLST Holdings or generate 128.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. CLST Holdings
Performance |
| Timeline |
| National CineMedia |
| CLST Holdings |
National CineMedia and CLST Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and CLST Holdings
The main advantage of trading using opposite National CineMedia and CLST Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, CLST 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 CLST Holdings will offset losses from the drop in CLST Holdings' 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 |
| CLST Holdings vs. Denison Mines Corp | CLST Holdings vs. Ecoloclean Industrs | CLST Holdings vs. Freedom Internet Group | CLST Holdings vs. National CineMedia |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |