Correlation Between National CineMedia and International Paper
Can any of the company-specific risk be diversified away by investing in both National CineMedia and International Paper 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 International Paper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and International Paper, you can compare the effects of market volatilities on National CineMedia and International Paper 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 International Paper. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and International Paper.
Diversification Opportunities for National CineMedia and International Paper
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and International Paper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Paper 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 International Paper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Paper has no effect on the direction of National CineMedia i.e., National CineMedia and International Paper go up and down completely randomly.
Pair Corralation between National CineMedia and International Paper
If you would invest 642.00 in National CineMedia on November 8, 2024 and sell it today you would earn a total of 58.00 from holding National CineMedia or generate 9.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
National CineMedia vs. International Paper
Performance |
| Timeline |
| National CineMedia |
| International Paper |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National CineMedia and International Paper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and International Paper
The main advantage of trading using opposite National CineMedia and International Paper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, International Paper 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 International Paper will offset losses from the drop in International Paper's long position.| National CineMedia vs. Mirriad Advertising plc | National CineMedia vs. INEO Tech Corp | National CineMedia vs. Kidoz Inc | National CineMedia vs. Marchex |
| International Paper vs. Altair Engineering | International Paper vs. Franklin Street Properties | International Paper vs. Cebu Air ADR | International Paper vs. Invitation Homes |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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