Correlation Between Presidio Property and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Presidio Property 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 Presidio Property and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Presidio Property Trust and National CineMedia, you can compare the effects of market volatilities on Presidio Property 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 Presidio Property with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Presidio Property and National CineMedia.
Diversification Opportunities for Presidio Property and National CineMedia
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Presidio and National is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Presidio Property Trust and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and Presidio Property 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 Presidio Property Trust 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 Presidio Property i.e., Presidio Property and National CineMedia go up and down completely randomly.
Pair Corralation between Presidio Property and National CineMedia
Given the investment horizon of 90 days Presidio Property Trust is expected to generate 2.17 times more return on investment than National CineMedia. However, Presidio Property is 2.17 times more volatile than National CineMedia. It trades about 0.03 of its potential returns per unit of risk. National CineMedia is currently generating about -0.04 per unit of risk. If you would invest 70.00 in Presidio Property Trust on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Presidio Property Trust or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Presidio Property Trust vs. National CineMedia
Performance |
| Timeline |
| Presidio Property Trust |
| National CineMedia |
Presidio Property and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Presidio Property and National CineMedia
The main advantage of trading using opposite Presidio Property and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presidio Property 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.| Presidio Property vs. Investcorp Credit Management | Presidio Property vs. Medalist Diversified Reit | Presidio Property vs. Mingzhu Logistics Holdings |
| National CineMedia vs. Mirriad Advertising plc | National CineMedia vs. INEO Tech Corp | National CineMedia vs. Kidoz Inc | National CineMedia vs. Marchex |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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