Correlation Between National CineMedia and SOUTHERN
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By analyzing existing cross correlation between National CineMedia and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on National CineMedia and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and SOUTHERN.
Diversification Opportunities for National CineMedia and SOUTHERN
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between National and SOUTHERN is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of National CineMedia i.e., National CineMedia and SOUTHERN go up and down completely randomly.
Pair Corralation between National CineMedia and SOUTHERN
Given the investment horizon of 90 days National CineMedia is expected to generate 0.94 times more return on investment than SOUTHERN. However, National CineMedia is 1.07 times less risky than SOUTHERN. It trades about 0.05 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about -0.22 per unit of risk. If you would invest 712.00 in National CineMedia on September 4, 2024 and sell it today you would earn a total of 17.00 from holding National CineMedia or generate 2.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
National CineMedia vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| National CineMedia |
| SOUTHERN CALIF EDISON |
National CineMedia and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and SOUTHERN
The main advantage of trading using opposite National CineMedia and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN'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 |
| SOUTHERN vs. Playtech plc | SOUTHERN vs. Dalata Hotel Group | SOUTHERN vs. Biglari Holdings | SOUTHERN vs. National CineMedia |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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