Correlation Between National CineMedia and Madison Square
Can any of the company-specific risk be diversified away by investing in both National CineMedia and Madison Square 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 National CineMedia and Madison Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Madison Square Garden, you can compare the effects of market volatilities on National CineMedia and Madison Square 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 National CineMedia with a short position of Madison Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Madison Square.
Diversification Opportunities for National CineMedia and Madison Square
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between National and Madison is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Madison Square Garden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Madison Square Garden and National CineMedia 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 National CineMedia are associated (or correlated) with Madison Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Madison Square Garden has no effect on the direction of National CineMedia i.e., National CineMedia and Madison Square go up and down completely randomly.
Pair Corralation between National CineMedia and Madison Square
Given the investment horizon of 90 days National CineMedia is expected to generate 1.41 times less return on investment than Madison Square. In addition to that, National CineMedia is 2.52 times more volatile than Madison Square Garden. It trades about 0.02 of its total potential returns per unit of risk. Madison Square Garden is currently generating about 0.06 per unit of volatility. If you would invest 18,250 in Madison Square Garden on February 14, 2024 and sell it today you would earn a total of 239.00 from holding Madison Square Garden or generate 1.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
National CineMedia vs. Madison Square Garden
Performance |
Timeline |
National CineMedia |
Madison Square Garden |
National CineMedia and Madison Square Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National CineMedia and Madison Square
The main advantage of trading using opposite National CineMedia and Madison Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Madison Square 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 Madison Square will offset losses from the drop in Madison Square's long position.National CineMedia vs. Ziff Davis | National CineMedia vs. Dolphin Entertainment | National CineMedia vs. Boston Omaha Corp |
Madison Square vs. Fox Corp Class | Madison Square vs. Fox Corp Class | Madison Square vs. LiveOne | Madison Square vs. News Corp B |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |