Correlation Between National CineMedia and Hollywood Intermediate
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Hollywood Intermediate 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 Hollywood Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Hollywood Intermediate, you can compare the effects of market volatilities on National CineMedia and Hollywood Intermediate 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 Hollywood Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Hollywood Intermediate.
Diversification Opportunities for National CineMedia and Hollywood Intermediate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and Hollywood is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Hollywood Intermediate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hollywood Intermediate 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 Hollywood Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hollywood Intermediate has no effect on the direction of National CineMedia i.e., National CineMedia and Hollywood Intermediate go up and down completely randomly.
Pair Corralation between National CineMedia and Hollywood Intermediate
If you would invest 0.00 in Hollywood Intermediate on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Hollywood Intermediate or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
National CineMedia vs. Hollywood Intermediate
Performance |
| Timeline |
| National CineMedia |
| Hollywood Intermediate |
National CineMedia and Hollywood Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Hollywood Intermediate
The main advantage of trading using opposite National CineMedia and Hollywood Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Hollywood Intermediate 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 Hollywood Intermediate will offset losses from the drop in Hollywood Intermediate'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 |
| Hollywood Intermediate vs. Liberty Media | Hollywood Intermediate vs. Atlanta Braves Holdings, | Hollywood Intermediate vs. News Corp B | Hollywood Intermediate vs. News Corp A |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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