Correlation Between National CineMedia and Freedom Internet
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Freedom Internet 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 Freedom Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Freedom Internet Group, you can compare the effects of market volatilities on National CineMedia and Freedom Internet 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 Freedom Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Freedom Internet.
Diversification Opportunities for National CineMedia and Freedom Internet
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Freedom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Freedom Internet Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Internet 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 Freedom Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Internet has no effect on the direction of National CineMedia i.e., National CineMedia and Freedom Internet go up and down completely randomly.
Pair Corralation between National CineMedia and Freedom Internet
If you would invest 712.00 in National CineMedia on September 4, 2024 and sell it today you would earn a total of 18.00 from holding National CineMedia or generate 2.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
National CineMedia vs. Freedom Internet Group
Performance |
| Timeline |
| National CineMedia |
| Freedom Internet |
National CineMedia and Freedom Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Freedom Internet
The main advantage of trading using opposite National CineMedia and Freedom Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Freedom Internet 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 Freedom Internet will offset losses from the drop in Freedom Internet'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 |
| Freedom Internet vs. Stagwell | Freedom Internet vs. Organic Sales and | Freedom Internet vs. National CineMedia | Freedom Internet vs. 51Talk Online Education |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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