Correlation Between Imax Corp and Bowhead Specialty
Can any of the company-specific risk be diversified away by investing in both Imax Corp and Bowhead Specialty 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 Bowhead Specialty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imax Corp and Bowhead Specialty Holdings, you can compare the effects of market volatilities on Imax Corp and Bowhead Specialty 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 Bowhead Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and Bowhead Specialty.
Diversification Opportunities for Imax Corp and Bowhead Specialty
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Imax and Bowhead is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and Bowhead Specialty Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowhead Specialty 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 Bowhead Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowhead Specialty has no effect on the direction of Imax Corp i.e., Imax Corp and Bowhead Specialty go up and down completely randomly.
Pair Corralation between Imax Corp and Bowhead Specialty
Given the investment horizon of 90 days Imax Corp is expected to generate 1.03 times more return on investment than Bowhead Specialty. However, Imax Corp is 1.03 times more volatile than Bowhead Specialty Holdings. It trades about -0.25 of its potential returns per unit of risk. Bowhead Specialty Holdings is currently generating about -0.35 per unit of risk. If you would invest 2,597 in Imax Corp on October 12, 2024 and sell it today you would lose (240.00) from holding Imax Corp or give up 9.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imax Corp vs. Bowhead Specialty Holdings
Performance |
| Timeline |
| Imax Corp |
| Bowhead Specialty |
Imax Corp and Bowhead Specialty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imax Corp and Bowhead Specialty
The main advantage of trading using opposite Imax Corp and Bowhead Specialty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imax Corp position performs unexpectedly, Bowhead Specialty 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 Bowhead Specialty will offset losses from the drop in Bowhead Specialty's long position.| Imax Corp vs. Marcus | Imax Corp vs. Dave Busters Entertainment | Imax Corp vs. AMC Networks | Imax Corp vs. News Corp A |
| Bowhead Specialty vs. National CineMedia | Bowhead Specialty vs. Weibo Corp | Bowhead Specialty vs. Imax Corp | Bowhead Specialty vs. Constellation Brands Class |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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