Correlation Between National CineMedia and TPG
Can any of the company-specific risk be diversified away by investing in both National CineMedia and TPG 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 TPG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and TPG Inc, you can compare the effects of market volatilities on National CineMedia and TPG 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 TPG. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and TPG.
Diversification Opportunities for National CineMedia and TPG
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between National and TPG is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and TPG Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPG Inc 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 TPG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPG Inc has no effect on the direction of National CineMedia i.e., National CineMedia and TPG go up and down completely randomly.
Pair Corralation between National CineMedia and TPG
Given the investment horizon of 90 days National CineMedia is expected to generate 1.56 times more return on investment than TPG. However, National CineMedia is 1.56 times more volatile than TPG Inc. It trades about 0.09 of its potential returns per unit of risk. TPG Inc is currently generating about 0.1 per unit of risk. If you would invest 375.00 in National CineMedia on November 3, 2024 and sell it today you would earn a total of 284.00 from holding National CineMedia or generate 75.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. TPG Inc
Performance |
| Timeline |
| National CineMedia |
| TPG Inc |
National CineMedia and TPG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and TPG
The main advantage of trading using opposite National CineMedia and TPG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, TPG 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 TPG will offset losses from the drop in TPG'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 |
| TPG vs. Ares Management LP | TPG vs. Patria Investments | TPG vs. Apollo Global Management | TPG vs. Cion Investment 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |