Correlation Between Imax Corp and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Imax Corp and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imax Corp and Dow Jones Industrial, you can compare the effects of market volatilities on Imax Corp and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and Dow Jones.
Diversification Opportunities for Imax Corp and Dow Jones
Very weak diversification
The 3 months correlation between Imax and Dow is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Imax Corp i.e., Imax Corp and Dow Jones go up and down completely randomly.
Pair Corralation between Imax Corp and Dow Jones
Given the investment horizon of 90 days Imax Corp is expected to generate 2.92 times more return on investment than Dow Jones. However, Imax Corp is 2.92 times more volatile than Dow Jones Industrial. It trades about 0.36 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.22 per unit of risk. If you would invest 2,055 in Imax Corp on August 27, 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imax Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Imax Corp and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Imax Corp
Pair trading matchups for Imax Corp
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Imax Corp and Dow Jones
The main advantage of trading using opposite Imax Corp and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imax Corp position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Imax Corp vs. Marcus | Imax Corp vs. Dave Busters Entertainment | Imax Corp vs. AMC Networks | Imax Corp vs. News Corp A |
| Dow Jones vs. Meiwu Technology Co | Dow Jones vs. 17 Education Technology | Dow Jones vs. 51Talk Online Education | Dow Jones vs. Afya |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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