Correlation Between National CineMedia and CITIGROUP
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By analyzing existing cross correlation between National CineMedia and CITIGROUP INC 465, you can compare the effects of market volatilities on National CineMedia and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and CITIGROUP.
Diversification Opportunities for National CineMedia and CITIGROUP
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and CITIGROUP is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and CITIGROUP INC 465 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 465 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 465 has no effect on the direction of National CineMedia i.e., National CineMedia and CITIGROUP go up and down completely randomly.
Pair Corralation between National CineMedia and CITIGROUP
Given the investment horizon of 90 days National CineMedia is expected to generate 5.42 times less return on investment than CITIGROUP. But when comparing it to its historical volatility, National CineMedia is 5.99 times less risky than CITIGROUP. It trades about 0.05 of its potential returns per unit of risk. CITIGROUP INC 465 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,246 in CITIGROUP INC 465 on September 3, 2024 and sell it today you would lose (139.00) from holding CITIGROUP INC 465 or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.17% |
| Values | Daily Returns |
National CineMedia vs. CITIGROUP INC 465
Performance |
| Timeline |
| National CineMedia |
| CITIGROUP INC 465 |
National CineMedia and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and CITIGROUP
The main advantage of trading using opposite National CineMedia and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP'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 |
| CITIGROUP vs. AerSale Corp | CITIGROUP vs. Enersys | CITIGROUP vs. Aldel Financial II | CITIGROUP vs. Jacobs Solutions |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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