Correlation Between National CineMedia and Service
Specify exactly 2 symbols:
By analyzing existing cross correlation between National CineMedia and Service Properties Trust, you can compare the effects of market volatilities on National CineMedia and Service 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 Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Service.
Diversification Opportunities for National CineMedia and Service
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and Service is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Service Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Service Properties Trust 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 Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Service Properties Trust has no effect on the direction of National CineMedia i.e., National CineMedia and Service go up and down completely randomly.
Pair Corralation between National CineMedia and Service
Given the investment horizon of 90 days National CineMedia is expected to generate 4.72 times more return on investment than Service. However, National CineMedia is 4.72 times more volatile than Service Properties Trust. It trades about 0.08 of its potential returns per unit of risk. Service Properties Trust is currently generating about 0.02 per unit of risk. If you would invest 673.00 in National CineMedia on September 12, 2024 and sell it today you would earn a total of 72.50 from holding National CineMedia or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
National CineMedia vs. Service Properties Trust
Performance |
| Timeline |
| National CineMedia |
| Service Properties Trust |
National CineMedia and Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Service
The main advantage of trading using opposite National CineMedia and Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Service 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 Service will offset losses from the drop in Service'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |