Correlation Between National CineMedia and Marcus

Can any of the company-specific risk be diversified away by investing in both National CineMedia and Marcus 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 Marcus into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between National CineMedia and Marcus, you can compare the effects of market volatilities on National CineMedia and Marcus 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 Marcus. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Marcus.

Diversification Opportunities for National CineMedia and Marcus

0.1

Correlation Coefficient

National CineMedia  Marcus

Average diversification

The 3 months correlation between National and Marcus is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus 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 Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of National CineMedia i.e., National CineMedia and Marcus go up and down completely randomly.

Pair Corralation between National CineMedia and Marcus

Given the investment horizon of 90 days National CineMedia is expected to under-perform the Marcus. In addition to that, National CineMedia is 1.26 times more volatile than Marcus. It trades about -0.09 of its total potential returns per unit of risk. Marcus is currently generating about -0.03 per unit of volatility. If you would invest  1,612  in Marcus on May 6, 2025 and sell it today you would lose (106.00) from holding Marcus or give up 6.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

National CineMedia  vs.  Marcus

National CineMedia

Risk-Adjusted Performance

Very Weak

Over the last 90 days National CineMedia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Marcus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marcus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, Marcus is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with National CineMedia and Marcus

The main advantage of trading using opposite National CineMedia and Marcus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, Marcus 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 Marcus will offset losses from the drop in Marcus' long position.

The idea behind National CineMedia and Marcus 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.