Correlation Between National CineMedia and AMERICAN
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By analyzing existing cross correlation between National CineMedia and AMERICAN EXPRESS PANY, you can compare the effects of market volatilities on National CineMedia and AMERICAN 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 AMERICAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and AMERICAN.
Diversification Opportunities for National CineMedia and AMERICAN
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and AMERICAN is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and AMERICAN EXPRESS PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMERICAN EXPRESS PANY 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 AMERICAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMERICAN EXPRESS PANY has no effect on the direction of National CineMedia i.e., National CineMedia and AMERICAN go up and down completely randomly.
Pair Corralation between National CineMedia and AMERICAN
Given the investment horizon of 90 days National CineMedia is expected to under-perform the AMERICAN. In addition to that, National CineMedia is 10.18 times more volatile than AMERICAN EXPRESS PANY. It trades about -0.03 of its total potential returns per unit of risk. AMERICAN EXPRESS PANY is currently generating about -0.22 per unit of volatility. If you would invest 9,803 in AMERICAN EXPRESS PANY on September 2, 2024 and sell it today you would lose (131.00) from holding AMERICAN EXPRESS PANY or give up 1.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
National CineMedia vs. AMERICAN EXPRESS PANY
Performance |
| Timeline |
| National CineMedia |
| AMERICAN EXPRESS PANY |
National CineMedia and AMERICAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and AMERICAN
The main advantage of trading using opposite National CineMedia and AMERICAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, AMERICAN 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 AMERICAN will offset losses from the drop in AMERICAN'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 |
| AMERICAN vs. SNDL Inc | AMERICAN vs. National CineMedia | AMERICAN vs. Monster Beverage Corp | AMERICAN vs. Nabors Industries |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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