Correlation Between Imax Corp and American Picture
Can any of the company-specific risk be diversified away by investing in both Imax Corp and American Picture 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 American Picture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imax Corp and American Picture House, you can compare the effects of market volatilities on Imax Corp and American Picture 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 American Picture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and American Picture.
Diversification Opportunities for Imax Corp and American Picture
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Imax and American is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and American Picture House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Picture House 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 American Picture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Picture House has no effect on the direction of Imax Corp i.e., Imax Corp and American Picture go up and down completely randomly.
Pair Corralation between Imax Corp and American Picture
Given the investment horizon of 90 days Imax Corp is expected to generate 0.63 times more return on investment than American Picture. However, Imax Corp is 1.6 times less risky than American Picture. It trades about 0.35 of its potential returns per unit of risk. American Picture House is currently generating about -0.09 per unit of risk. If you would invest 2,100 in Imax Corp on August 30, 2024 and sell it today you would earn a total of 503.00 from holding Imax Corp or generate 23.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imax Corp vs. American Picture House
Performance |
| Timeline |
| Imax Corp |
| American Picture House |
Imax Corp and American Picture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imax Corp and American Picture
The main advantage of trading using opposite Imax Corp and American Picture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imax Corp position performs unexpectedly, American Picture 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 American Picture will offset losses from the drop in American Picture's long position.| Imax Corp vs. Liberty Media | Imax Corp vs. Atlanta Braves Holdings, | Imax Corp vs. News Corp B | 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |