Correlation Between Marcus and Lions Gate
Can any of the company-specific risk be diversified away by investing in both Marcus and Lions Gate 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 Lions Gate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus and Lions Gate Entertainment, you can compare the effects of market volatilities on Marcus and Lions Gate 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 Lions Gate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and Lions Gate.
Diversification Opportunities for Marcus and Lions Gate
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Marcus and Lions is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and Lions Gate Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lions Gate Entertainment 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 Lions Gate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lions Gate Entertainment has no effect on the direction of Marcus i.e., Marcus and Lions Gate go up and down completely randomly.
Pair Corralation between Marcus and Lions Gate
Considering the 90-day investment horizon Marcus is expected to generate 1.02 times more return on investment than Lions Gate. However, Marcus is 1.02 times more volatile than Lions Gate Entertainment. It trades about 0.42 of its potential returns per unit of risk. Lions Gate Entertainment is currently generating about 0.09 per unit of risk. If you would invest 1,712 in Marcus on August 31, 2024 and sell it today you would earn a total of 536.00 from holding Marcus or generate 31.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcus vs. Lions Gate Entertainment
Performance |
| Timeline |
| Marcus |
| Lions Gate Entertainment |
Marcus and Lions Gate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus and Lions Gate
The main advantage of trading using opposite Marcus and Lions Gate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus position performs unexpectedly, Lions Gate 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 Lions Gate will offset losses from the drop in Lions Gate's long position.| Marcus vs. Roku Inc | Marcus vs. AMC Entertainment Holdings | Marcus vs. Paramount Global Class | Marcus vs. Warner Bros Discovery |
| Lions Gate vs. Cinemark Holdings | Lions Gate vs. News Corp B | Lions Gate vs. Marcus | Lions Gate vs. Liberty Media |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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