Correlation Between National CineMedia and Mesa Air
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Mesa Air 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 Mesa Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Mesa Air Group, you can compare the effects of market volatilities on National CineMedia and Mesa Air 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 Mesa Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Mesa Air.
Diversification Opportunities for National CineMedia and Mesa Air
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and Mesa is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Mesa Air Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mesa Air Group 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 Mesa Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mesa Air Group has no effect on the direction of National CineMedia i.e., National CineMedia and Mesa Air go up and down completely randomly.
Pair Corralation between National CineMedia and Mesa Air
Given the investment horizon of 90 days National CineMedia is expected to generate 1.16 times more return on investment than Mesa Air. However, National CineMedia is 1.16 times more volatile than Mesa Air Group. It trades about 0.06 of its potential returns per unit of risk. Mesa Air Group is currently generating about 0.03 per unit of risk. If you would invest 280.00 in National CineMedia on September 12, 2024 and sell it today you would earn a total of 454.00 from holding National CineMedia or generate 162.14% 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. Mesa Air Group
Performance |
| Timeline |
| National CineMedia |
| Mesa Air Group |
National CineMedia and Mesa Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Mesa Air
The main advantage of trading using opposite National CineMedia and Mesa Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Mesa Air 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 Mesa Air will offset losses from the drop in Mesa Air'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 |
| Mesa Air vs. Allegiant Travel | Mesa Air vs. Sun Country Airlines | Mesa Air vs. Frontier Group Holdings | Mesa Air vs. Azul SA |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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