Correlation Between National CineMedia and Troika Media
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Troika Media 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 Troika Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Troika Media Group, you can compare the effects of market volatilities on National CineMedia and Troika Media 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 Troika Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Troika Media.
Diversification Opportunities for National CineMedia and Troika Media
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between National and Troika is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Troika Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Troika Media 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 Troika Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Troika Media Group has no effect on the direction of National CineMedia i.e., National CineMedia and Troika Media go up and down completely randomly.
Pair Corralation between National CineMedia and Troika Media
If you would invest 420.00 in National CineMedia on October 20, 2024 and sell it today you would earn a total of 260.00 from holding National CineMedia or generate 61.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
National CineMedia vs. Troika Media Group
Performance |
| Timeline |
| National CineMedia |
| Troika Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
National CineMedia and Troika Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Troika Media
The main advantage of trading using opposite National CineMedia and Troika Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Troika Media 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 Troika Media will offset losses from the drop in Troika Media'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 |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |