Two Equities Correlation Analysis
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CNK
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This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Diversification Opportunities for Cinemark Holdings and NYSE Composite
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cinemark and NYSE is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Cinemark Holdings and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Cinemark Holdings i.e., Cinemark Holdings and NYSE Composite go up and down completely randomly.
Pair Corralation between Cinemark Holdings and NYSE Composite
Considering the 90-day investment horizon Cinemark Holdings is expected to generate 3.16 times more return on investment than NYSE Composite. However, Cinemark Holdings is 3.16 times more volatile than NYSE Composite. It trades about 0.04 of its potential returns per unit of risk. NYSE Composite is currently generating about -0.31 per unit of risk. If you would invest 1,788 in Cinemark Holdings on January 20, 2024 and sell it today you would earn a total of 24.00 from holding Cinemark Holdings or generate 1.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Cinemark Holdings vs. NYSE Composite
Performance |
Timeline |
Cinemark Holdings and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Cinemark Holdings
Pair trading matchups for Cinemark Holdings
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Cinemark Holdings and NYSE Composite
The main advantage of trading using opposite Cinemark Holdings and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinemark Holdings position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.The idea behind Cinemark Holdings and NYSE Composite pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.NYSE Composite vs. Dine Brands Global | NYSE Composite vs. BJs Restaurants | NYSE Composite vs. Chipotle Mexican Grill | NYSE Composite vs. Shake Shack |
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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