Correlation Between National CineMedia and First CommunityPFD
Can any of the company-specific risk be diversified away by investing in both National CineMedia and First CommunityPFD 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 First CommunityPFD into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and First Community, you can compare the effects of market volatilities on National CineMedia and First CommunityPFD 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 First CommunityPFD. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and First CommunityPFD.
Diversification Opportunities for National CineMedia and First CommunityPFD
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and First is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and First Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First CommunityPFD 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 First CommunityPFD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First CommunityPFD has no effect on the direction of National CineMedia i.e., National CineMedia and First CommunityPFD go up and down completely randomly.
Pair Corralation between National CineMedia and First CommunityPFD
Given the investment horizon of 90 days National CineMedia is expected to generate 4.22 times less return on investment than First CommunityPFD. In addition to that, National CineMedia is 3.65 times more volatile than First Community. It trades about 0.01 of its total potential returns per unit of risk. First Community is currently generating about 0.15 per unit of volatility. If you would invest 890.00 in First Community on October 26, 2024 and sell it today you would earn a total of 35.00 from holding First Community or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.5% |
| Values | Daily Returns |
National CineMedia vs. First Community
Performance |
| Timeline |
| National CineMedia |
| First CommunityPFD |
National CineMedia and First CommunityPFD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and First CommunityPFD
The main advantage of trading using opposite National CineMedia and First CommunityPFD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, First CommunityPFD 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 First CommunityPFD will offset losses from the drop in First CommunityPFD'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 |
| First CommunityPFD vs. FG Annuities Life | First CommunityPFD vs. Sun Life Financial | First CommunityPFD vs. Aegon NV ADR | First CommunityPFD 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| 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 |