Correlation Between Cinemark Holdings and Toho
Can any of the company-specific risk be diversified away by investing in both Cinemark Holdings and Toho 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 Toho into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cinemark Holdings and Toho Co, you can compare the effects of market volatilities on Cinemark Holdings and Toho 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 Toho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinemark Holdings and Toho.
Diversification Opportunities for Cinemark Holdings and Toho
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinemark and Toho is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Cinemark Holdings and Toho Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toho 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 Toho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toho has no effect on the direction of Cinemark Holdings i.e., Cinemark Holdings and Toho go up and down completely randomly.
Pair Corralation between Cinemark Holdings and Toho
Assuming the 90 days horizon Cinemark Holdings is expected to under-perform the Toho. In addition to that, Cinemark Holdings is 1.46 times more volatile than Toho Co. It trades about -0.04 of its total potential returns per unit of risk. Toho Co is currently generating about 0.27 per unit of volatility. If you would invest 3,660 in Toho Co on September 22, 2024 and sell it today you would earn a total of 380.00 from holding Toho Co or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cinemark Holdings vs. Toho Co
Performance |
| Timeline |
| Cinemark Holdings |
| Toho |
Cinemark Holdings and Toho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinemark Holdings and Toho
The main advantage of trading using opposite Cinemark Holdings and Toho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinemark Holdings position performs unexpectedly, Toho 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 Toho will offset losses from the drop in Toho's long position.| Cinemark Holdings vs. Live Nation Entertainment | Cinemark Holdings vs. Dolby Laboratories | Cinemark Holdings vs. CTS Eventim AG | Cinemark Holdings vs. Toho Co |
| Toho vs. Live Nation Entertainment | Toho vs. Dolby Laboratories | Toho vs. CTS Eventim AG | Toho vs. Fuji Media Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |