Correlation Between CMCSA and National CineMedia
Specify exactly 2 symbols:
By analyzing existing cross correlation between CMCSA 2937 01 NOV 56 and National CineMedia, you can compare the effects of market volatilities on CMCSA 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 CMCSA with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CMCSA and National CineMedia.
Diversification Opportunities for CMCSA and National CineMedia
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CMCSA and National is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CMCSA 2937 01 NOV 56 and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and CMCSA 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 CMCSA 2937 01 NOV 56 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 CMCSA i.e., CMCSA and National CineMedia go up and down completely randomly.
Pair Corralation between CMCSA and National CineMedia
Assuming the 90 days trading horizon CMCSA is expected to generate 25.35 times less return on investment than National CineMedia. But when comparing it to its historical volatility, CMCSA 2937 01 NOV 56 is 3.34 times less risky than National CineMedia. It trades about 0.01 of its potential returns per unit of risk. National CineMedia is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 335.00 in National CineMedia on September 12, 2024 and sell it today you would earn a total of 399.00 from holding National CineMedia or generate 119.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.15% |
| Values | Daily Returns |
CMCSA 2937 01 NOV 56 vs. National CineMedia
Performance |
| Timeline |
| CMCSA 2937 01 |
| National CineMedia |
CMCSA and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CMCSA and National CineMedia
The main advantage of trading using opposite CMCSA and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CMCSA 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.The idea behind CMCSA 2937 01 NOV 56 and National CineMedia 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.| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |