Correlation Between National Cinemedia and Equity Lifestyle

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both National Cinemedia and Equity Lifestyle 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 Equity Lifestyle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Cinemedia and Equity Lifestyle Properties, you can compare the effects of market volatilities on National Cinemedia and Equity Lifestyle 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 Equity Lifestyle. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Cinemedia and Equity Lifestyle.

Diversification Opportunities for National Cinemedia and Equity Lifestyle

  Correlation Coefficient

Poor diversification

The 3 months correlation between National and Equity is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding National Cinemedia and Equity Lifestyle Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equity Lifestyle Pro 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 Equity Lifestyle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equity Lifestyle Pro has no effect on the direction of National Cinemedia i.e., National Cinemedia and Equity Lifestyle go up and down completely randomly.

Pair Corralation between National Cinemedia and Equity Lifestyle

Given the investment horizon of 90 days National Cinemedia is expected to under-perform the Equity Lifestyle. In addition to that, National Cinemedia is 2.93 times more volatile than Equity Lifestyle Properties. It trades about -0.43 of its total potential returns per unit of risk. Equity Lifestyle Properties is currently generating about -0.34 per unit of volatility. If you would invest  7,251  in Equity Lifestyle Properties on June 30, 2022 and sell it today you would lose (808.00)  from holding Equity Lifestyle Properties or give up 11.14% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
ValuesDaily Returns

National Cinemedia  vs.  Equity Lifestyle Properties

 Performance (%) 
National Cinemedia 
National Performance
0 of 100
Over the last 90 days National Cinemedia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, National Cinemedia is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

National Price Channel

Equity Lifestyle Pro 
Equity Performance
0 of 100
Over the last 90 days Equity Lifestyle Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Stock's essential indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Equity Price Channel

National Cinemedia and Equity Lifestyle Volatility Contrast

   Predicted Return Density   

Pair Trading with National Cinemedia and Equity Lifestyle

The main advantage of trading using opposite National Cinemedia and Equity Lifestyle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Cinemedia position performs unexpectedly, Equity Lifestyle 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 Equity Lifestyle will offset losses from the drop in Equity Lifestyle's long position.
National Cinemedia vs. Amazon Inc
The idea behind National Cinemedia and Equity Lifestyle Properties 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.
Equity Lifestyle vs. Invitation Homes
Equity Lifestyle vs. Amazon Inc
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities