Correlation Between National CineMedia and Micromobility
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Micromobility 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 Micromobility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Micromobility, you can compare the effects of market volatilities on National CineMedia and Micromobility 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 Micromobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Micromobility.
Diversification Opportunities for National CineMedia and Micromobility
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and Micromobility is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Micromobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micromobility 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 Micromobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micromobility has no effect on the direction of National CineMedia i.e., National CineMedia and Micromobility go up and down completely randomly.
Pair Corralation between National CineMedia and Micromobility
Given the investment horizon of 90 days National CineMedia is expected to generate 0.6 times more return on investment than Micromobility. However, National CineMedia is 1.66 times less risky than Micromobility. It trades about 0.06 of its potential returns per unit of risk. Micromobility is currently generating about -0.01 per unit of risk. If you would invest 275.00 in National CineMedia on September 13, 2024 and sell it today you would earn a total of 470.00 from holding National CineMedia or generate 170.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 29.15% |
| Values | Daily Returns |
National CineMedia vs. Micromobility
Performance |
| Timeline |
| National CineMedia |
| Micromobility |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National CineMedia and Micromobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Micromobility
The main advantage of trading using opposite National CineMedia and Micromobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Micromobility 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 Micromobility will offset losses from the drop in Micromobility'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 |
| Micromobility vs. National CineMedia | Micromobility vs. Sphere Entertainment Co | Micromobility vs. Dave Busters Entertainment | Micromobility vs. Molson Coors Brewing |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |