Correlation Between National CineMedia and Glory Star
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Glory Star 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 Glory Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Glory Star New, you can compare the effects of market volatilities on National CineMedia and Glory Star 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 Glory Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Glory Star.
Diversification Opportunities for National CineMedia and Glory Star
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between National and Glory is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Glory Star New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glory Star New 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 Glory Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glory Star New has no effect on the direction of National CineMedia i.e., National CineMedia and Glory Star go up and down completely randomly.
Pair Corralation between National CineMedia and Glory Star
If you would invest 50.00 in Glory Star New on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Glory Star New or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
National CineMedia vs. Glory Star New
Performance |
| Timeline |
| National CineMedia |
| Glory Star New |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National CineMedia and Glory Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Glory Star
The main advantage of trading using opposite National CineMedia and Glory Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Glory Star 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 Glory Star will offset losses from the drop in Glory Star's long position.| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Impact Fusion International | National CineMedia vs. ZW Data Action |
| Glory Star vs. Global Payout | Glory Star vs. Clubhouse Media Group | Glory Star vs. ZW Data Action | Glory Star 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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