Correlation Between National CineMedia and GENERAL
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By analyzing existing cross correlation between National CineMedia and GENERAL MTRS FINL, you can compare the effects of market volatilities on National CineMedia and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and GENERAL.
Diversification Opportunities for National CineMedia and GENERAL
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between National and GENERAL is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and GENERAL MTRS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL MTRS FINL 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL MTRS FINL has no effect on the direction of National CineMedia i.e., National CineMedia and GENERAL go up and down completely randomly.
Pair Corralation between National CineMedia and GENERAL
Given the investment horizon of 90 days National CineMedia is expected to generate 15.78 times more return on investment than GENERAL. However, National CineMedia is 15.78 times more volatile than GENERAL MTRS FINL. It trades about 0.07 of its potential returns per unit of risk. GENERAL MTRS FINL is currently generating about -0.17 per unit of risk. If you would invest 648.00 in National CineMedia on October 25, 2024 and sell it today you would earn a total of 22.00 from holding National CineMedia or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
National CineMedia vs. GENERAL MTRS FINL
Performance |
| Timeline |
| National CineMedia |
| GENERAL MTRS FINL |
National CineMedia and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and GENERAL
The main advantage of trading using opposite National CineMedia and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL'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 |
| GENERAL vs. Compania Cervecerias Unidas | GENERAL vs. China Resources Beer | GENERAL vs. Willamette Valley Vineyards | GENERAL vs. Sellas Life Sciences |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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