Correlation Between National CineMedia and 857477AY9

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Can any of the company-specific risk be diversified away by investing in both National CineMedia and 857477AY9 at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining National CineMedia and 857477AY9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and STT 5769 15 JUN 47, you can compare the effects of market volatilities on National CineMedia and 857477AY9 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 857477AY9. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and 857477AY9.

Diversification Opportunities for National CineMedia and 857477AY9

-0.09
  Correlation Coefficient

Good diversification

The 3 months correlation between National and 857477AY9 is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and STT 5769 15 JUN 47 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STT 5769 15 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 857477AY9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STT 5769 15 has no effect on the direction of National CineMedia i.e., National CineMedia and 857477AY9 go up and down completely randomly.

Pair Corralation between National CineMedia and 857477AY9

Given the investment horizon of 90 days National CineMedia is expected to generate 2.87 times more return on investment than 857477AY9. However, National CineMedia is 2.87 times more volatile than STT 5769 15 JUN 47. It trades about 0.05 of its potential returns per unit of risk. STT 5769 15 JUN 47 is currently generating about 0.01 per unit of risk. If you would invest  383.00  in National CineMedia on September 2, 2024 and sell it today you would earn a total of  312.00  from holding National CineMedia or generate 81.46% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy60.69%
ValuesDaily Returns

National CineMedia  vs.  STT 5769 15 JUN 47

 Performance 
       Timeline  
National CineMedia 

Risk-Adjusted Performance

2 of 100

 
Weak
 
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Weak
Compared to the overall equity markets, risk-adjusted returns on investments in National CineMedia are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong primary indicators, National CineMedia is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.
STT 5769 15 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days STT 5769 15 JUN 47 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for STT 5769 15 JUN 47 investors.

National CineMedia and 857477AY9 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with National CineMedia and 857477AY9

The main advantage of trading using opposite National CineMedia and 857477AY9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, 857477AY9 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 857477AY9 will offset losses from the drop in 857477AY9's long position.
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The idea behind National CineMedia and STT 5769 15 JUN 47 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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