Correlation Between Virtus Investment and Cinemark Holdings
Can any of the company-specific risk be diversified away by investing in both Virtus Investment and Cinemark Holdings 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 Virtus Investment and Cinemark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Investment Partners and Cinemark Holdings, you can compare the effects of market volatilities on Virtus Investment and Cinemark Holdings 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 Virtus Investment with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Investment and Cinemark Holdings.
Diversification Opportunities for Virtus Investment and Cinemark Holdings
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Virtus and Cinemark is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Investment Partners and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings and Virtus Investment 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 Virtus Investment Partners are associated (or correlated) with Cinemark Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinemark Holdings has no effect on the direction of Virtus Investment i.e., Virtus Investment and Cinemark Holdings go up and down completely randomly.
Pair Corralation between Virtus Investment and Cinemark Holdings
Assuming the 90 days horizon Virtus Investment Partners is expected to generate 1.49 times more return on investment than Cinemark Holdings. However, Virtus Investment is 1.49 times more volatile than Cinemark Holdings. It trades about -0.1 of its potential returns per unit of risk. Cinemark Holdings is currently generating about -0.34 per unit of risk. If you would invest 21,000 in Virtus Investment Partners on October 22, 2024 and sell it today you would lose (600.00) from holding Virtus Investment Partners or give up 2.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Investment Partners vs. Cinemark Holdings
Performance |
| Timeline |
| Virtus Investment |
| Cinemark Holdings |
Virtus Investment and Cinemark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Investment and Cinemark Holdings
The main advantage of trading using opposite Virtus Investment and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Investment position performs unexpectedly, Cinemark Holdings 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 Cinemark Holdings will offset losses from the drop in Cinemark Holdings' long position.| Virtus Investment vs. Cognizant Technology Solutions | Virtus Investment vs. Wayside Technology Group | Virtus Investment vs. GEELY AUTOMOBILE | Virtus Investment vs. CARSALESCOM |
| Cinemark Holdings vs. COLUMBIA SPORTSWEAR | Cinemark Holdings vs. JD SPORTS FASH | Cinemark Holdings vs. DICKS Sporting Goods | Cinemark Holdings vs. Madison Square Garden |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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