Correlation Between National CineMedia and BRISTOL
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By analyzing existing cross correlation between National CineMedia and BRISTOL MYERS SQUIBB CO, you can compare the effects of market volatilities on National CineMedia and BRISTOL 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 BRISTOL. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and BRISTOL.
Diversification Opportunities for National CineMedia and BRISTOL
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between National and BRISTOL is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and BRISTOL MYERS SQUIBB CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRISTOL MYERS SQUIBB 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 BRISTOL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRISTOL MYERS SQUIBB has no effect on the direction of National CineMedia i.e., National CineMedia and BRISTOL go up and down completely randomly.
Pair Corralation between National CineMedia and BRISTOL
Given the investment horizon of 90 days National CineMedia is expected to generate 5.55 times less return on investment than BRISTOL. But when comparing it to its historical volatility, National CineMedia is 6.9 times less risky than BRISTOL. It trades about 0.06 of its potential returns per unit of risk. BRISTOL MYERS SQUIBB CO is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 9,904 in BRISTOL MYERS SQUIBB CO on September 14, 2024 and sell it today you would lose (39.00) from holding BRISTOL MYERS SQUIBB CO or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 74.09% |
| Values | Daily Returns |
National CineMedia vs. BRISTOL MYERS SQUIBB CO
Performance |
| Timeline |
| National CineMedia |
| BRISTOL MYERS SQUIBB |
National CineMedia and BRISTOL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and BRISTOL
The main advantage of trading using opposite National CineMedia and BRISTOL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, BRISTOL 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 BRISTOL will offset losses from the drop in BRISTOL'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 |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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