Correlation Between National CineMedia and Roadzen
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Roadzen 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 Roadzen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Roadzen, you can compare the effects of market volatilities on National CineMedia and Roadzen 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 Roadzen. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Roadzen.
Diversification Opportunities for National CineMedia and Roadzen
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Roadzen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Roadzen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roadzen 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 Roadzen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roadzen has no effect on the direction of National CineMedia i.e., National CineMedia and Roadzen go up and down completely randomly.
Pair Corralation between National CineMedia and Roadzen
Given the investment horizon of 90 days National CineMedia is expected to generate 9.07 times less return on investment than Roadzen. But when comparing it to its historical volatility, National CineMedia is 9.38 times less risky than Roadzen. It trades about 0.27 of its potential returns per unit of risk. Roadzen is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 87.00 in Roadzen on September 13, 2024 and sell it today you would earn a total of 84.00 from holding Roadzen or generate 96.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. Roadzen
Performance |
| Timeline |
| National CineMedia |
| Roadzen |
National CineMedia and Roadzen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Roadzen
The main advantage of trading using opposite National CineMedia and Roadzen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Roadzen 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 Roadzen will offset losses from the drop in Roadzen'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 |
| Roadzen vs. Dave Warrants | Roadzen vs. Swvl Holdings Corp | Roadzen vs. Guardforce AI Co | Roadzen vs. Thayer Ventures Acquisition |
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 CEOs Directory module to screen CEOs from public companies around the world.
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