Correlation Between National CineMedia and PHILIP
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By analyzing existing cross correlation between National CineMedia and PHILIP MORRIS INTL, you can compare the effects of market volatilities on National CineMedia and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and PHILIP.
Diversification Opportunities for National CineMedia and PHILIP
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between National and PHILIP is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of National CineMedia i.e., National CineMedia and PHILIP go up and down completely randomly.
Pair Corralation between National CineMedia and PHILIP
Given the investment horizon of 90 days National CineMedia is expected to generate 4.86 times more return on investment than PHILIP. However, National CineMedia is 4.86 times more volatile than PHILIP MORRIS INTL. It trades about 0.07 of its potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about 0.02 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 | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
National CineMedia vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| National CineMedia |
| PHILIP MORRIS INTL |
National CineMedia and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and PHILIP
The main advantage of trading using opposite National CineMedia and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP'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 |
| PHILIP vs. Fomento Economico Mexicano | PHILIP vs. Constellation Brands Class | PHILIP vs. Datadog | PHILIP vs. Monster Beverage Corp |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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