Correlation Between World Wrestling and Cinemark Holdings
Can any of the company-specific risk be diversified away by investing in both World Wrestling 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 World Wrestling and Cinemark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between World Wrestling Entertainment and Cinemark Holdings, you can compare the effects of market volatilities on World Wrestling 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 World Wrestling with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of World Wrestling and Cinemark Holdings.
Diversification Opportunities for World Wrestling and Cinemark Holdings
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between World and Cinemark is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding World Wrestling Entertainment and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings and World Wrestling 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 World Wrestling Entertainment 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 World Wrestling i.e., World Wrestling and Cinemark Holdings go up and down completely randomly.
Pair Corralation between World Wrestling and Cinemark Holdings
If you would invest 10,642 in World Wrestling Entertainment on November 1, 2024 and sell it today you would earn a total of 0.00 from holding World Wrestling Entertainment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
World Wrestling Entertainment vs. Cinemark Holdings
Performance |
| Timeline |
| World Wrestling Ente |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cinemark Holdings |
World Wrestling and Cinemark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with World Wrestling and Cinemark Holdings
The main advantage of trading using opposite World Wrestling and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if World Wrestling 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.| World Wrestling vs. Liberty Media | World Wrestling vs. Live Nation Entertainment | World Wrestling vs. Madison Square Garden | World Wrestling vs. Warner Music Group |
| Cinemark Holdings vs. News Corp B | Cinemark Holdings vs. Marcus | Cinemark Holdings vs. Liberty Media | Cinemark Holdings vs. Warner Music Group |
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 Managers module to screen money managers from public funds and ETFs managed around the world.
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