Correlation Between Pop Culture and Imax Corp
Can any of the company-specific risk be diversified away by investing in both Pop Culture and Imax Corp 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 Pop Culture and Imax Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pop Culture Group and Imax Corp, you can compare the effects of market volatilities on Pop Culture and Imax Corp 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 Pop Culture with a short position of Imax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pop Culture and Imax Corp.
Diversification Opportunities for Pop Culture and Imax Corp
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Pop and Imax is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Pop Culture Group and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax Corp and Pop Culture 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 Pop Culture Group are associated (or correlated) with Imax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imax Corp has no effect on the direction of Pop Culture i.e., Pop Culture and Imax Corp go up and down completely randomly.
Pair Corralation between Pop Culture and Imax Corp
Given the investment horizon of 90 days Pop Culture Group is expected to generate 13.78 times more return on investment than Imax Corp. However, Pop Culture is 13.78 times more volatile than Imax Corp. It trades about 0.05 of its potential returns per unit of risk. Imax Corp is currently generating about 0.05 per unit of risk. If you would invest 82.00 in Pop Culture Group on August 30, 2024 and sell it today you would earn a total of 33.00 from holding Pop Culture Group or generate 40.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Pop Culture Group vs. Imax Corp
Performance |
| Timeline |
| Pop Culture Group |
| Imax Corp |
Pop Culture and Imax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pop Culture and Imax Corp
The main advantage of trading using opposite Pop Culture and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pop Culture position performs unexpectedly, Imax Corp 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 Imax Corp will offset losses from the drop in Imax Corp's long position.| Pop Culture vs. News Corp A | Pop Culture vs. Marcus | Pop Culture vs. Liberty Media | Pop Culture vs. Fox Corp Class |
| Imax Corp vs. Marcus | Imax Corp vs. Dave Busters Entertainment | Imax Corp vs. AMC Networks | Imax Corp vs. News Corp A |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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