Correlation Between Marcus and Imax Corp
Can any of the company-specific risk be diversified away by investing in both Marcus and Imax Corp 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 Marcus and Imax Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus and Imax Corp, you can compare the effects of market volatilities on Marcus and Imax Corp 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 Marcus with a short position of Imax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and Imax Corp.
Diversification Opportunities for Marcus and Imax Corp
Almost no diversification
The 3 months correlation between Marcus and Imax is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax Corp and Marcus 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 Marcus are associated (or correlated) with Imax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imax Corp has no effect on the direction of Marcus i.e., Marcus and Imax Corp go up and down completely randomly.
Pair Corralation between Marcus and Imax Corp
Considering the 90-day investment horizon Marcus is expected to generate 0.83 times more return on investment than Imax Corp. However, Marcus is 1.21 times less risky than Imax Corp. It trades about -0.13 of its potential returns per unit of risk. Imax Corp is currently generating about -0.18 per unit of risk. If you would invest 2,118 in Marcus on November 2, 2024 and sell it today you would lose (80.00) from holding Marcus or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcus vs. Imax Corp
Performance |
| Timeline |
| Marcus |
| Imax Corp |
Marcus and Imax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus and Imax Corp
The main advantage of trading using opposite Marcus and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus position performs unexpectedly, Imax Corp 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 Imax Corp will offset losses from the drop in Imax Corp's long position.| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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