Correlation Between National CineMedia and MYR
Can any of the company-specific risk be diversified away by investing in both National CineMedia and MYR 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 MYR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and MYR Group, you can compare the effects of market volatilities on National CineMedia and MYR 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 MYR. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and MYR.
Diversification Opportunities for National CineMedia and MYR
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and MYR is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and MYR Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MYR 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 MYR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MYR Group has no effect on the direction of National CineMedia i.e., National CineMedia and MYR go up and down completely randomly.
Pair Corralation between National CineMedia and MYR
Given the investment horizon of 90 days National CineMedia is expected to under-perform the MYR. But the stock apears to be less risky and, when comparing its historical volatility, National CineMedia is 1.31 times less risky than MYR. The stock trades about -0.05 of its potential returns per unit of risk. The MYR Group is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 11,676 in MYR Group on August 27, 2024 and sell it today you would earn a total of 4,291 from holding MYR Group or generate 36.75% 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. MYR Group
Performance |
| Timeline |
| National CineMedia |
| MYR Group |
National CineMedia and MYR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and MYR
The main advantage of trading using opposite National CineMedia and MYR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, MYR 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 MYR will offset losses from the drop in MYR's long position.| National CineMedia vs. Mirriad Advertising plc | National CineMedia vs. INEO Tech Corp | National CineMedia vs. Innovid Corp | National CineMedia vs. Townsquare Media |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |