Correlation Between Cinemark Holdings and 500

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Can any of the company-specific risk be diversified away by investing in both Cinemark Holdings and 500 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 500 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cinemark Holdings and 500, you can compare the effects of market volatilities on Cinemark Holdings and 500 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 500. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinemark Holdings and 500.

Diversification Opportunities for Cinemark Holdings and 500

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Cinemark and 500 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cinemark Holdings and 500 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 500 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 500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 500 has no effect on the direction of Cinemark Holdings i.e., Cinemark Holdings and 500 go up and down completely randomly.

Pair Corralation between Cinemark Holdings and 500

If you would invest  1,681  in Cinemark Holdings on December 29, 2023 and sell it today you would earn a total of  126.00  from holding Cinemark Holdings or generate 7.5% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Cinemark Holdings  vs.  500

 Performance 
       Timeline  
Cinemark Holdings 

Risk-Adjusted Performance

17 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Cinemark Holdings are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Cinemark Holdings disclosed solid returns over the last few months and may actually be approaching a breakup point.
500 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days 500 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, 500 is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Cinemark Holdings and 500 Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cinemark Holdings and 500

The main advantage of trading using opposite Cinemark Holdings and 500 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinemark Holdings position performs unexpectedly, 500 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 500 will offset losses from the drop in 500's long position.
The idea behind Cinemark Holdings and 500 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.
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.

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