Correlation Between Central Pacific and National CineMedia
Can any of the company-specific risk be diversified away by investing in both Central Pacific 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 Central Pacific and National CineMedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Central Pacific Financial and National CineMedia, you can compare the effects of market volatilities on Central Pacific 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 Central Pacific with a short position of National CineMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Central Pacific and National CineMedia.
Diversification Opportunities for Central Pacific and National CineMedia
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Central and National is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Central Pacific Financial and National CineMedia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National CineMedia and Central Pacific 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 Central Pacific Financial 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 Central Pacific i.e., Central Pacific and National CineMedia go up and down completely randomly.
Pair Corralation between Central Pacific and National CineMedia
Considering the 90-day investment horizon Central Pacific Financial is expected to generate 0.74 times more return on investment than National CineMedia. However, Central Pacific Financial is 1.35 times less risky than National CineMedia. It trades about 0.06 of its potential returns per unit of risk. National CineMedia is currently generating about -0.08 per unit of risk. If you would invest 3,035 in Central Pacific Financial on September 12, 2025 and sell it today you would earn a total of 184.00 from holding Central Pacific Financial or generate 6.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Central Pacific Financial vs. National CineMedia
Performance |
| Timeline |
| Central Pacific Financial |
| National CineMedia |
Central Pacific and National CineMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Central Pacific and National CineMedia
The main advantage of trading using opposite Central Pacific and National CineMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Central Pacific 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.| Central Pacific vs. MidWestOne Financial Group | Central Pacific vs. Hanmi Financial | Central Pacific vs. Capitol Federal Financial | Central Pacific vs. Heritage Financial |
| National CineMedia vs. Advantage Solutions | National CineMedia vs. Boston Omaha Corp | National CineMedia vs. Gray Television | National CineMedia vs. Perion Network |
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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