Correlation Between Imax Corp and AMC Networks
Can any of the company-specific risk be diversified away by investing in both Imax Corp and AMC Networks 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 Imax Corp and AMC Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imax Corp and AMC Networks, you can compare the effects of market volatilities on Imax Corp and AMC Networks 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 Imax Corp with a short position of AMC Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and AMC Networks.
Diversification Opportunities for Imax Corp and AMC Networks
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Imax and AMC is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and AMC Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Networks and Imax Corp 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 Imax Corp are associated (or correlated) with AMC Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Networks has no effect on the direction of Imax Corp i.e., Imax Corp and AMC Networks go up and down completely randomly.
Pair Corralation between Imax Corp and AMC Networks
Given the investment horizon of 90 days Imax Corp is expected to generate 0.73 times more return on investment than AMC Networks. However, Imax Corp is 1.37 times less risky than AMC Networks. It trades about 0.36 of its potential returns per unit of risk. AMC Networks is currently generating about 0.16 per unit of risk. If you would invest 2,055 in Imax Corp on August 28, 2024 and sell it today you would earn a total of 470.00 from holding Imax Corp or generate 22.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imax Corp vs. AMC Networks
Performance |
| Timeline |
| Imax Corp |
| AMC Networks |
Imax Corp and AMC Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imax Corp and AMC Networks
The main advantage of trading using opposite Imax Corp and AMC Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imax Corp position performs unexpectedly, AMC Networks 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 AMC Networks will offset losses from the drop in AMC Networks' long position.| Imax Corp vs. Marcus | Imax Corp vs. Dave Busters Entertainment | Imax Corp vs. AMC Networks | Imax Corp vs. News Corp A |
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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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