Correlation Between Cinemark Holdings and Geratherm Medical
Can any of the company-specific risk be diversified away by investing in both Cinemark Holdings and Geratherm Medical 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 Cinemark Holdings and Geratherm Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cinemark Holdings and Geratherm Medical AG, you can compare the effects of market volatilities on Cinemark Holdings and Geratherm Medical 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 Cinemark Holdings with a short position of Geratherm Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinemark Holdings and Geratherm Medical.
Diversification Opportunities for Cinemark Holdings and Geratherm Medical
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cinemark and Geratherm is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cinemark Holdings and Geratherm Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Geratherm Medical and Cinemark Holdings 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 Cinemark Holdings are associated (or correlated) with Geratherm Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Geratherm Medical has no effect on the direction of Cinemark Holdings i.e., Cinemark Holdings and Geratherm Medical go up and down completely randomly.
Pair Corralation between Cinemark Holdings and Geratherm Medical
Assuming the 90 days horizon Cinemark Holdings is expected to generate 0.49 times more return on investment than Geratherm Medical. However, Cinemark Holdings is 2.04 times less risky than Geratherm Medical. It trades about 0.4 of its potential returns per unit of risk. Geratherm Medical AG is currently generating about -0.11 per unit of risk. If you would invest 2,650 in Cinemark Holdings on August 27, 2024 and sell it today you would earn a total of 414.00 from holding Cinemark Holdings or generate 15.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinemark Holdings vs. Geratherm Medical AG
Performance |
| Timeline |
| Cinemark Holdings |
| Geratherm Medical |
Cinemark Holdings and Geratherm Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinemark Holdings and Geratherm Medical
The main advantage of trading using opposite Cinemark Holdings and Geratherm Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinemark Holdings position performs unexpectedly, Geratherm Medical 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 Geratherm Medical will offset losses from the drop in Geratherm Medical's long position.| Cinemark Holdings vs. Geratherm Medical AG | Cinemark Holdings vs. Fukuyama Transporting Co | Cinemark Holdings vs. Diamyd Medical AB | Cinemark Holdings vs. MeVis Medical Solutions |
| Geratherm Medical vs. Superior Plus Corp | Geratherm Medical vs. NMI Holdings | Geratherm Medical vs. Origin Agritech | Geratherm Medical vs. SIVERS SEMICONDUCTORS AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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