Correlation Between Imax Corp and Sycamore Entmt
Can any of the company-specific risk be diversified away by investing in both Imax Corp and Sycamore Entmt 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 Sycamore Entmt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imax Corp and Sycamore Entmt Grp, you can compare the effects of market volatilities on Imax Corp and Sycamore Entmt 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 Sycamore Entmt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and Sycamore Entmt.
Diversification Opportunities for Imax Corp and Sycamore Entmt
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Imax and Sycamore is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and Sycamore Entmt Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sycamore Entmt Grp 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 Sycamore Entmt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sycamore Entmt Grp has no effect on the direction of Imax Corp i.e., Imax Corp and Sycamore Entmt go up and down completely randomly.
Pair Corralation between Imax Corp and Sycamore Entmt
Given the investment horizon of 90 days Imax Corp is expected to generate 9.16 times less return on investment than Sycamore Entmt. But when comparing it to its historical volatility, Imax Corp is 6.46 times less risky than Sycamore Entmt. It trades about 0.05 of its potential returns per unit of risk. Sycamore Entmt Grp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.14 in Sycamore Entmt Grp on August 30, 2024 and sell it today you would earn a total of 0.08 from holding Sycamore Entmt Grp or generate 57.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Imax Corp vs. Sycamore Entmt Grp
Performance |
| Timeline |
| Imax Corp |
| Sycamore Entmt Grp |
Imax Corp and Sycamore Entmt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imax Corp and Sycamore Entmt
The main advantage of trading using opposite Imax Corp and Sycamore Entmt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imax Corp position performs unexpectedly, Sycamore Entmt 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 Sycamore Entmt will offset losses from the drop in Sycamore Entmt's long position.| Imax Corp vs. Marcus | Imax Corp vs. Dave Busters Entertainment | Imax Corp vs. AMC Networks | Imax Corp vs. News Corp A |
| Sycamore Entmt vs. Aftermaster | Sycamore Entmt vs. Lingerie Fighting Championships | Sycamore Entmt vs. Major League Football | Sycamore Entmt vs. WRIT Media Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |