Correlation Between National Cinemedia and Tor Minerals

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

Diversification Opportunities for National Cinemedia and Tor Minerals

0.26
  Correlation Coefficient

Modest diversification

The 3 months correlation between National and Tor Minerals is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding National Cinemedia and Tor Minerals Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tor Minerals Intl 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 Tor Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tor Minerals Intl has no effect on the direction of National Cinemedia i.e., National Cinemedia and Tor Minerals go up and down completely randomly.

Pair Corralation between National Cinemedia and Tor Minerals

Given the investment horizon of 90 days National Cinemedia is expected to under-perform the Tor Minerals. But the stock apears to be less risky and, when comparing its historical volatility, National Cinemedia is 1.32 times less risky than Tor Minerals. The stock trades about -0.02 of its potential returns per unit of risk. The Tor Minerals Intl is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  114.00  in Tor Minerals Intl on June 28, 2022 and sell it today you would earn a total of  129.00  from holding Tor Minerals Intl or generate 113.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

National Cinemedia  vs.  Tor Minerals Intl

 Performance (%) 
       Timeline  
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

Tor Minerals Intl 
Tor Minerals Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Tor Minerals Intl are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Tor Minerals revealed solid returns over the last few months and may actually be approaching a breakup point.

Tor Minerals Price Channel

National Cinemedia and Tor Minerals Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with National Cinemedia and Tor Minerals

The main advantage of trading using opposite National Cinemedia and Tor Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Cinemedia position performs unexpectedly, Tor Minerals 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 Tor Minerals will offset losses from the drop in Tor Minerals' long position.
National Cinemedia vs. Clearwater Paper Corp
The idea behind National Cinemedia and Tor Minerals Intl 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.
Tor Minerals vs. Kibush Capital Corp
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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