Correlation Between LLOYDS and National CineMedia
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By analyzing existing cross correlation between LLOYDS BANKING GROUP and National CineMedia, you can compare the effects of market volatilities on LLOYDS 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 LLOYDS with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of LLOYDS and National CineMedia.
Diversification Opportunities for LLOYDS and National CineMedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between LLOYDS and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding LLOYDS BANKING GROUP and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and LLOYDS 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 LLOYDS BANKING GROUP 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 LLOYDS i.e., LLOYDS and National CineMedia go up and down completely randomly.
Pair Corralation between LLOYDS and National CineMedia
Assuming the 90 days trading horizon LLOYDS BANKING GROUP is expected to generate 0.07 times more return on investment than National CineMedia. However, LLOYDS BANKING GROUP is 15.36 times less risky than National CineMedia. It trades about -0.16 of its potential returns per unit of risk. National CineMedia is currently generating about -0.04 per unit of risk. If you would invest 9,926 in LLOYDS BANKING GROUP on September 1, 2024 and sell it today you would lose (49.00) from holding LLOYDS BANKING GROUP or give up 0.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 71.43% |
| Values | Daily Returns |
LLOYDS BANKING GROUP vs. National CineMedia
Performance |
| Timeline |
| LLOYDS BANKING GROUP |
| National CineMedia |
LLOYDS and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LLOYDS and National CineMedia
The main advantage of trading using opposite LLOYDS and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LLOYDS 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.| LLOYDS vs. Alaska Air Group | LLOYDS vs. Jutal Offshore Oil | LLOYDS vs. Westinghouse Air Brake | LLOYDS vs. KNOT Offshore Partners |
| 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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