Correlation Between National CineMedia and Ihuman
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Ihuman 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 Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Ihuman Inc, you can compare the effects of market volatilities on National CineMedia and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Ihuman.
Diversification Opportunities for National CineMedia and Ihuman
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and Ihuman is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of National CineMedia i.e., National CineMedia and Ihuman go up and down completely randomly.
Pair Corralation between National CineMedia and Ihuman
Given the investment horizon of 90 days National CineMedia is expected to generate 0.97 times more return on investment than Ihuman. However, National CineMedia is 1.04 times less risky than Ihuman. It trades about 0.08 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.03 per unit of risk. If you would invest 398.00 in National CineMedia on September 2, 2024 and sell it today you would earn a total of 297.00 from holding National CineMedia or generate 74.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. Ihuman Inc
Performance |
| Timeline |
| National CineMedia |
| Ihuman Inc |
National CineMedia and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Ihuman
The main advantage of trading using opposite National CineMedia and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman'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 |
| Ihuman vs. Wah Fu Education | Ihuman vs. Golden Sun Education | Ihuman vs. Elite Education Group | Ihuman vs. American Public 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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