Correlation Between National CineMedia and SBM Offshore
Can any of the company-specific risk be diversified away by investing in both National CineMedia and SBM Offshore 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 SBM Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and SBM Offshore NV, you can compare the effects of market volatilities on National CineMedia and SBM Offshore 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 SBM Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and SBM Offshore.
Diversification Opportunities for National CineMedia and SBM Offshore
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and SBM is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and SBM Offshore NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM Offshore NV 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 SBM Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM Offshore NV has no effect on the direction of National CineMedia i.e., National CineMedia and SBM Offshore go up and down completely randomly.
Pair Corralation between National CineMedia and SBM Offshore
Given the investment horizon of 90 days National CineMedia is expected to under-perform the SBM Offshore. In addition to that, National CineMedia is 3.82 times more volatile than SBM Offshore NV. It trades about -0.03 of its total potential returns per unit of risk. SBM Offshore NV is currently generating about 0.14 per unit of volatility. If you would invest 1,836 in SBM Offshore NV on September 2, 2024 and sell it today you would earn a total of 44.00 from holding SBM Offshore NV or generate 2.4% 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. SBM Offshore NV
Performance |
| Timeline |
| National CineMedia |
| SBM Offshore NV |
National CineMedia and SBM Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and SBM Offshore
The main advantage of trading using opposite National CineMedia and SBM Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, SBM Offshore 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 SBM Offshore will offset losses from the drop in SBM Offshore'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 |
| SBM Offshore vs. Expro Group Holdings | SBM Offshore vs. ChampionX | SBM Offshore vs. Ranger Energy Services | SBM Offshore vs. Cactus Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |