Correlation Between Imax Corp and Endeavor Group
Can any of the company-specific risk be diversified away by investing in both Imax Corp and Endeavor Group 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 Endeavor Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imax Corp and Endeavor Group Holdings, you can compare the effects of market volatilities on Imax Corp and Endeavor Group 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 Endeavor Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and Endeavor Group.
Diversification Opportunities for Imax Corp and Endeavor Group
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Imax and Endeavor is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and Endeavor Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavor Group Holdings 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 Endeavor Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavor Group Holdings has no effect on the direction of Imax Corp i.e., Imax Corp and Endeavor Group go up and down completely randomly.
Pair Corralation between Imax Corp and Endeavor Group
Given the investment horizon of 90 days Imax Corp is expected to generate 4.43 times more return on investment than Endeavor Group. However, Imax Corp is 4.43 times more volatile than Endeavor Group Holdings. It trades about 0.36 of its potential returns per unit of risk. Endeavor Group Holdings is currently generating about 0.14 per unit of risk. If you would invest 2,023 in Imax Corp on August 24, 2024 and sell it today you would earn a total of 496.00 from holding Imax Corp or generate 24.52% 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. Endeavor Group Holdings
Performance |
| Timeline |
| Imax Corp |
| Endeavor Group Holdings |
Imax Corp and Endeavor Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imax Corp and Endeavor Group
The main advantage of trading using opposite Imax Corp and Endeavor Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imax Corp position performs unexpectedly, Endeavor Group 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 Endeavor Group will offset losses from the drop in Endeavor Group's 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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