Correlation Between National CineMedia and Inflection Point
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Inflection Point 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 Inflection Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Inflection Point Acquisition, you can compare the effects of market volatilities on National CineMedia and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Inflection Point.
Diversification Opportunities for National CineMedia and Inflection Point
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between National and Inflection is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of National CineMedia i.e., National CineMedia and Inflection Point go up and down completely randomly.
Pair Corralation between National CineMedia and Inflection Point
Given the investment horizon of 90 days National CineMedia is expected to generate 3.42 times less return on investment than Inflection Point. But when comparing it to its historical volatility, National CineMedia is 1.36 times less risky than Inflection Point. It trades about 0.07 of its potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,075 in Inflection Point Acquisition on September 12, 2024 and sell it today you would earn a total of 415.00 from holding Inflection Point Acquisition or generate 38.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. Inflection Point Acquisition
Performance |
| Timeline |
| National CineMedia |
| Inflection Point Acq |
National CineMedia and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Inflection Point
The main advantage of trading using opposite National CineMedia and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point'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 |
| Inflection Point vs. 51Talk Online Education | Inflection Point vs. CarsalesCom Ltd ADR | Inflection Point vs. Osaka Steel Co, | Inflection Point vs. Marchex |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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