Correlation Between National CineMedia and Westrock Coffee
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Westrock Coffee 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 Westrock Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Westrock Coffee, you can compare the effects of market volatilities on National CineMedia and Westrock Coffee 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 Westrock Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Westrock Coffee.
Diversification Opportunities for National CineMedia and Westrock Coffee
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between National and Westrock is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Westrock Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westrock Coffee 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 Westrock Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westrock Coffee has no effect on the direction of National CineMedia i.e., National CineMedia and Westrock Coffee go up and down completely randomly.
Pair Corralation between National CineMedia and Westrock Coffee
Given the investment horizon of 90 days National CineMedia is expected to generate 0.67 times more return on investment than Westrock Coffee. However, National CineMedia is 1.49 times less risky than Westrock Coffee. It trades about 0.05 of its potential returns per unit of risk. Westrock Coffee is currently generating about -0.16 per unit of risk. If you would invest 659.00 in National CineMedia on December 2, 2024 and sell it today you would earn a total of 10.00 from holding National CineMedia or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
National CineMedia vs. Westrock Coffee
Performance |
| Timeline |
| National CineMedia |
| Westrock Coffee |
National CineMedia and Westrock Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and Westrock Coffee
The main advantage of trading using opposite National CineMedia and Westrock Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Westrock Coffee 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 Westrock Coffee will offset losses from the drop in Westrock Coffee's long position.| National CineMedia vs. Baosheng Media Group | ||
| National CineMedia vs. Impact Fusion International | ||
| National CineMedia vs. ZW Data Action |
| Westrock Coffee vs. Coffee Holding Co | ||
| Westrock Coffee vs. Bridgford Foods | ||
| Westrock Coffee vs. John B Sanfilippo | ||
| Westrock Coffee vs. Treehouse Foods |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |