Correlation Between Global Eagle and Cinemark Holdings
Can any of the company-specific risk be diversified away by investing in both Global Eagle 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 Global Eagle and Cinemark Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Eagle Entertainment and Cinemark Holdings, you can compare the effects of market volatilities on Global Eagle 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 Global Eagle with a short position of Cinemark Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Eagle and Cinemark Holdings.
Diversification Opportunities for Global Eagle and Cinemark Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and Cinemark is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Eagle Entertainment and Cinemark Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinemark Holdings and Global Eagle 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 Global Eagle Entertainment 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 Global Eagle i.e., Global Eagle and Cinemark Holdings go up and down completely randomly.
Pair Corralation between Global Eagle and Cinemark Holdings
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Global Eagle Entertainment vs. Cinemark Holdings
Performance |
| Timeline |
| Global Eagle Enterta |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cinemark Holdings |
Global Eagle and Cinemark Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Eagle and Cinemark Holdings
The main advantage of trading using opposite Global Eagle and Cinemark Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Eagle 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.| Global Eagle vs. FDG Electric Vehicles | Global Eagle vs. Tesla Inc | Global Eagle vs. American Axle Manufacturing | Global Eagle vs. Wabash National |
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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