Correlation Between Eros STX and Cinemark Holdings
Can any of the company-specific risk be diversified away by investing in both Eros STX and Cinemark Holdings 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 Eros STX and Cinemark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eros STX Global and Cinemark Holdings, you can compare the effects of market volatilities on Eros STX 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 Eros STX with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros STX and Cinemark Holdings.
Diversification Opportunities for Eros STX and Cinemark Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eros and Cinemark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eros STX Global and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings and Eros STX 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 Eros STX Global 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 has no effect on the direction of Eros STX i.e., Eros STX and Cinemark Holdings go up and down completely randomly.
Pair Corralation between Eros STX and Cinemark Holdings
If you would invest 1,443 in Cinemark Holdings on January 20, 2024 and sell it today you would earn a total of 369.00 from holding Cinemark Holdings or generate 25.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Eros STX Global vs. Cinemark Holdings
Performance |
| Timeline |
| Eros STX Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cinemark Holdings |
Eros STX and Cinemark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros STX and Cinemark Holdings
The main advantage of trading using opposite Eros STX and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros STX position performs unexpectedly, Cinemark Holdings 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 Cinemark Holdings will offset losses from the drop in Cinemark Holdings' long position.| Eros STX vs. Acumen Pharmaceuticals | Eros STX vs. Valneva SE ADR | Eros STX vs. Tarsus PharmaceuticalsInc | Eros STX vs. Boyd Gaming |
| Cinemark Holdings vs. News Corp B | Cinemark Holdings vs. Endeavor Group Holdings | Cinemark Holdings vs. Live Nation Entertainment | Cinemark Holdings vs. Warner Bros Discovery |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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