Correlation Between Chicken Soup and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Chicken Soup and National CineMedia 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 Chicken Soup and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chicken Soup for and National CineMedia, you can compare the effects of market volatilities on Chicken Soup and National CineMedia 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 Chicken Soup with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chicken Soup and National CineMedia.
Diversification Opportunities for Chicken Soup and National CineMedia
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chicken and National is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Chicken Soup for and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and Chicken Soup 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 Chicken Soup for are associated (or correlated) with National CineMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National CineMedia has no effect on the direction of Chicken Soup i.e., Chicken Soup and National CineMedia go up and down completely randomly.
Pair Corralation between Chicken Soup and National CineMedia
Given the investment horizon of 90 days Chicken Soup for is expected to under-perform the National CineMedia. In addition to that, Chicken Soup is 1.36 times more volatile than National CineMedia. It trades about -0.03 of its total potential returns per unit of risk. National CineMedia is currently generating about 0.06 per unit of volatility. If you would invest 230.00 in National CineMedia on February 23, 2024 and sell it today you would earn a total of 282.50 from holding National CineMedia or generate 122.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chicken Soup for vs. National CineMedia
Performance |
Timeline |
Chicken Soup for |
National CineMedia |
Chicken Soup and National CineMedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chicken Soup and National CineMedia
The main advantage of trading using opposite Chicken Soup and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chicken Soup position performs unexpectedly, National CineMedia 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 National CineMedia will offset losses from the drop in National CineMedia's long position.Chicken Soup vs. HUMANA INC | Chicken Soup vs. Small Cap Core | Chicken Soup vs. High Yield Municipal Fund | Chicken Soup vs. Morningstar Unconstrained Allocation |
National CineMedia vs. Baosheng Media Group | National CineMedia vs. Townsquare Media | National CineMedia vs. Dolphin Entertainment | National CineMedia vs. MGO Global Common |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |