Correlation Between National CineMedia and NORSK
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By analyzing existing cross correlation between National CineMedia and NORSK HYDRO A, you can compare the effects of market volatilities on National CineMedia and NORSK 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 NORSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and NORSK.
Diversification Opportunities for National CineMedia and NORSK
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and NORSK is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and NORSK HYDRO A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORSK HYDRO A 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 NORSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORSK HYDRO A has no effect on the direction of National CineMedia i.e., National CineMedia and NORSK go up and down completely randomly.
Pair Corralation between National CineMedia and NORSK
Given the investment horizon of 90 days National CineMedia is expected to generate 11.07 times more return on investment than NORSK. However, National CineMedia is 11.07 times more volatile than NORSK HYDRO A. It trades about 0.1 of its potential returns per unit of risk. NORSK HYDRO A is currently generating about 0.04 per unit of risk. If you would invest 483.00 in National CineMedia on September 3, 2024 and sell it today you would earn a total of 212.00 from holding National CineMedia or generate 43.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.38% |
| Values | Daily Returns |
National CineMedia vs. NORSK HYDRO A
Performance |
| Timeline |
| National CineMedia |
| NORSK HYDRO A |
National CineMedia and NORSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and NORSK
The main advantage of trading using opposite National CineMedia and NORSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, NORSK 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 NORSK will offset losses from the drop in NORSK'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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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