Correlation Between National CineMedia and Fluent
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Fluent 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 Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Fluent Inc, you can compare the effects of market volatilities on National CineMedia and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Fluent.
Diversification Opportunities for National CineMedia and Fluent
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between National and Fluent is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of National CineMedia i.e., National CineMedia and Fluent go up and down completely randomly.
Pair Corralation between National CineMedia and Fluent
Given the investment horizon of 90 days National CineMedia is expected to generate 19.97 times less return on investment than Fluent. In addition to that, National CineMedia is 1.06 times more volatile than Fluent Inc. It trades about 0.01 of its total potential returns per unit of risk. Fluent Inc is currently generating about 0.15 per unit of volatility. If you would invest 263.00 in Fluent Inc on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Fluent Inc or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. Fluent Inc
Performance |
| Timeline |
| National CineMedia |
| Fluent Inc |
National CineMedia and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Fluent
The main advantage of trading using opposite National CineMedia and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent'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 |
| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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