Correlation Between National CineMedia and ALTRIA
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By analyzing existing cross correlation between National CineMedia and ALTRIA GROUP INC, you can compare the effects of market volatilities on National CineMedia and ALTRIA 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 ALTRIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and ALTRIA.
Diversification Opportunities for National CineMedia and ALTRIA
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between National and ALTRIA is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and ALTRIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALTRIA GROUP 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 ALTRIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALTRIA GROUP INC has no effect on the direction of National CineMedia i.e., National CineMedia and ALTRIA go up and down completely randomly.
Pair Corralation between National CineMedia and ALTRIA
Given the investment horizon of 90 days National CineMedia is expected to generate 1.72 times more return on investment than ALTRIA. However, National CineMedia is 1.72 times more volatile than ALTRIA GROUP INC. It trades about 0.1 of its potential returns per unit of risk. ALTRIA GROUP INC is currently generating about -0.03 per unit of risk. If you would invest 509.00 in National CineMedia on September 3, 2024 and sell it today you would earn a total of 186.00 from holding National CineMedia or generate 36.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.4% |
| Values | Daily Returns |
National CineMedia vs. ALTRIA GROUP INC
Performance |
| Timeline |
| National CineMedia |
| ALTRIA GROUP INC |
National CineMedia and ALTRIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and ALTRIA
The main advantage of trading using opposite National CineMedia and ALTRIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, ALTRIA 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 ALTRIA will offset losses from the drop in ALTRIA'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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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