Correlation Between American Picture and Corus Entertainment
Can any of the company-specific risk be diversified away by investing in both American Picture and Corus Entertainment 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 American Picture and Corus Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Picture House and Corus Entertainment, you can compare the effects of market volatilities on American Picture and Corus Entertainment 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 American Picture with a short position of Corus Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Picture and Corus Entertainment.
Diversification Opportunities for American Picture and Corus Entertainment
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Corus is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding American Picture House and Corus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corus Entertainment and American Picture 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 American Picture House are associated (or correlated) with Corus Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corus Entertainment has no effect on the direction of American Picture i.e., American Picture and Corus Entertainment go up and down completely randomly.
Pair Corralation between American Picture and Corus Entertainment
Given the investment horizon of 90 days American Picture House is expected to generate 2.52 times more return on investment than Corus Entertainment. However, American Picture is 2.52 times more volatile than Corus Entertainment. It trades about 0.04 of its potential returns per unit of risk. Corus Entertainment is currently generating about 0.1 per unit of risk. If you would invest 34.00 in American Picture House on August 31, 2024 and sell it today you would lose (9.00) from holding American Picture House or give up 26.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.31% |
| Values | Daily Returns |
American Picture House vs. Corus Entertainment
Performance |
| Timeline |
| American Picture House |
| Corus Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American Picture and Corus Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Picture and Corus Entertainment
The main advantage of trading using opposite American Picture and Corus Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Picture position performs unexpectedly, Corus Entertainment 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 Corus Entertainment will offset losses from the drop in Corus Entertainment's long position.The idea behind American Picture House and Corus Entertainment 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.| Corus Entertainment vs. Kinetik Holdings | Corus Entertainment vs. AerSale Corp | Corus Entertainment vs. Southwest Gas Holdings | Corus Entertainment vs. Pentair PLC |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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