Pair Correlation Between DOW and Cinemark Holdings

This module allows you to analyze existing cross correlation between DOW and Cinemark Holdings Inc. You can compare the effects of market volatilities on DOW 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 DOW with a short position of Cinemark Holdings. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Cinemark Holdings.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 DOW  vs   Cinemark Holdings Inc
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, DOW is expected to generate 0.22 times more return on investment than Cinemark Holdings. However, DOW is 4.6 times less risky than Cinemark Holdings. It trades about 0.84 of its potential returns per unit of risk. Cinemark Holdings Inc is currently generating about -0.03 per unit of risk. If you would invest  2,229,609  in DOW on September 24, 2017 and sell it today you would earn a total of  103,254  from holding DOW or generate 4.63% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between DOW and Cinemark Holdings
-0.39

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Cinemark Holdings Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings Inc and DOW 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 DOW 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 Inc has no effect on the direction of DOW i.e. DOW and Cinemark Holdings go up and down completely randomly.
    Optimize

Comparative Volatility

 Predicted Return Density 
      Returns