Correlation Between Imax Corp and Funko
Can any of the company-specific risk be diversified away by investing in both Imax Corp and Funko 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 Funko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imax Corp and Funko Inc, you can compare the effects of market volatilities on Imax Corp and Funko 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 Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and Funko.
Diversification Opportunities for Imax Corp and Funko
Good diversification
The 3 months correlation between Imax and Funko is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc 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 Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Imax Corp i.e., Imax Corp and Funko go up and down completely randomly.
Pair Corralation between Imax Corp and Funko
Given the investment horizon of 90 days Imax Corp is expected to under-perform the Funko. But the stock apears to be less risky and, when comparing its historical volatility, Imax Corp is 1.48 times less risky than Funko. The stock trades about -0.16 of its potential returns per unit of risk. The Funko Inc is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,164 in Funko Inc on October 20, 2024 and sell it today you would earn a total of 153.00 from holding Funko Inc or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imax Corp vs. Funko Inc
Performance |
| Timeline |
| Imax Corp |
| Funko Inc |
Imax Corp and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imax Corp and Funko
The main advantage of trading using opposite Imax Corp and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imax Corp position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.| Imax Corp vs. Marcus | Imax Corp vs. Dave Busters Entertainment | Imax Corp vs. AMC Networks | 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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