Correlation Between National CineMedia and MoneyHero Limited
Can any of the company-specific risk be diversified away by investing in both National CineMedia and MoneyHero Limited 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 MoneyHero Limited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and MoneyHero Limited Class, you can compare the effects of market volatilities on National CineMedia and MoneyHero Limited 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 MoneyHero Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and MoneyHero Limited.
Diversification Opportunities for National CineMedia and MoneyHero Limited
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between National and MoneyHero is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and MoneyHero Limited Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MoneyHero Limited Class 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 MoneyHero Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MoneyHero Limited Class has no effect on the direction of National CineMedia i.e., National CineMedia and MoneyHero Limited go up and down completely randomly.
Pair Corralation between National CineMedia and MoneyHero Limited
Given the investment horizon of 90 days National CineMedia is expected to under-perform the MoneyHero Limited. But the stock apears to be less risky and, when comparing its historical volatility, National CineMedia is 1.15 times less risky than MoneyHero Limited. The stock trades about -0.03 of its potential returns per unit of risk. The MoneyHero Limited Class is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 116.00 in MoneyHero Limited Class on October 26, 2024 and sell it today you would lose (5.00) from holding MoneyHero Limited Class or give up 4.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. MoneyHero Limited Class
Performance |
| Timeline |
| National CineMedia |
| MoneyHero Limited Class |
National CineMedia and MoneyHero Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and MoneyHero Limited
The main advantage of trading using opposite National CineMedia and MoneyHero Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, MoneyHero Limited 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 MoneyHero Limited will offset losses from the drop in MoneyHero Limited'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 |
| MoneyHero Limited vs. Mattel Inc | MoneyHero Limited vs. National CineMedia | MoneyHero Limited vs. Ubisoft Entertainment | MoneyHero Limited vs. Cleantech Power Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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