Correlation Between AuQ Gold and National CineMedia
Can any of the company-specific risk be diversified away by investing in both AuQ Gold and National CineMedia 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 AuQ Gold and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AuQ Gold Mining and National CineMedia, you can compare the effects of market volatilities on AuQ Gold and National CineMedia 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 AuQ Gold with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of AuQ Gold and National CineMedia.
Diversification Opportunities for AuQ Gold and National CineMedia
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AuQ and National is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding AuQ Gold Mining and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and AuQ Gold 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 AuQ Gold Mining are associated (or correlated) with National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of AuQ Gold i.e., AuQ Gold and National CineMedia go up and down completely randomly.
Pair Corralation between AuQ Gold and National CineMedia
Assuming the 90 days horizon AuQ Gold Mining is expected to generate 3.43 times more return on investment than National CineMedia. However, AuQ Gold is 3.43 times more volatile than National CineMedia. It trades about 0.06 of its potential returns per unit of risk. National CineMedia is currently generating about 0.09 per unit of risk. If you would invest 4.00 in AuQ Gold Mining on September 12, 2024 and sell it today you would earn a total of 6.00 from holding AuQ Gold Mining or generate 150.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
AuQ Gold Mining vs. National CineMedia
Performance |
| Timeline |
| AuQ Gold Mining |
| National CineMedia |
AuQ Gold and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AuQ Gold and National CineMedia
The main advantage of trading using opposite AuQ Gold and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AuQ Gold position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia's long position.| AuQ Gold vs. National CineMedia | AuQ Gold vs. Apogee Enterprises | AuQ Gold vs. Pinterest | AuQ Gold vs. Zedge Inc |
| 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |