Correlation Between National CineMedia and Yuexiu Transport
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Yuexiu Transport 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 Yuexiu Transport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Yuexiu Transport Infrastructure, you can compare the effects of market volatilities on National CineMedia and Yuexiu Transport 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 Yuexiu Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Yuexiu Transport.
Diversification Opportunities for National CineMedia and Yuexiu Transport
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Yuexiu is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Yuexiu Transport Infrastructur in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuexiu Transport Inf 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 Yuexiu Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuexiu Transport Inf has no effect on the direction of National CineMedia i.e., National CineMedia and Yuexiu Transport go up and down completely randomly.
Pair Corralation between National CineMedia and Yuexiu Transport
Given the investment horizon of 90 days National CineMedia is expected to generate 2.66 times more return on investment than Yuexiu Transport. However, National CineMedia is 2.66 times more volatile than Yuexiu Transport Infrastructure. It trades about 0.05 of its potential returns per unit of risk. Yuexiu Transport Infrastructure is currently generating about 0.1 per unit of risk. If you would invest 260.00 in National CineMedia on November 2, 2024 and sell it today you would earn a total of 404.50 from holding National CineMedia or generate 155.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
National CineMedia vs. Yuexiu Transport Infrastructur
Performance |
| Timeline |
| National CineMedia |
| Yuexiu Transport Inf |
National CineMedia and Yuexiu Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Yuexiu Transport
The main advantage of trading using opposite National CineMedia and Yuexiu Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Yuexiu Transport 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 Yuexiu Transport will offset losses from the drop in Yuexiu Transport'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 |
| Yuexiu Transport vs. Zhejiang Expressway Co | Yuexiu Transport vs. Jiangsu Expressway Co | Yuexiu Transport vs. Jiangsu Expressway | Yuexiu Transport vs. Verra Mobility Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |