Correlation Between Major Cineplex and Impact Growth
Can any of the company-specific risk be diversified away by investing in both Major Cineplex and Impact Growth 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 Major Cineplex and Impact Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Major Cineplex Lifestyle and Impact Growth REIT, you can compare the effects of market volatilities on Major Cineplex and Impact Growth 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 Major Cineplex with a short position of Impact Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Major Cineplex and Impact Growth.
Diversification Opportunities for Major Cineplex and Impact Growth
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Major and Impact is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Major Cineplex Lifestyle and Impact Growth REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Growth REIT and Major Cineplex 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 Major Cineplex Lifestyle are associated (or correlated) with Impact Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Growth REIT has no effect on the direction of Major Cineplex i.e., Major Cineplex and Impact Growth go up and down completely randomly.
Pair Corralation between Major Cineplex and Impact Growth
Assuming the 90 days trading horizon Major Cineplex Lifestyle is expected to generate 0.78 times more return on investment than Impact Growth. However, Major Cineplex Lifestyle is 1.29 times less risky than Impact Growth. It trades about 0.15 of its potential returns per unit of risk. Impact Growth REIT is currently generating about -0.13 per unit of risk. If you would invest 412.00 in Major Cineplex Lifestyle on August 31, 2024 and sell it today you would earn a total of 14.00 from holding Major Cineplex Lifestyle or generate 3.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Major Cineplex Lifestyle vs. Impact Growth REIT
Performance |
| Timeline |
| Major Cineplex Lifestyle |
| Impact Growth REIT |
Major Cineplex and Impact Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Major Cineplex and Impact Growth
The main advantage of trading using opposite Major Cineplex and Impact Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Major Cineplex position performs unexpectedly, Impact Growth 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 Impact Growth will offset losses from the drop in Impact Growth's long position.| Major Cineplex vs. LH Shopping Centers | Major Cineplex vs. Land and Houses | Major Cineplex vs. Quality Houses Property | Major Cineplex vs. Impact Growth REIT |
| Impact Growth vs. CPN Retail Growth | Impact Growth vs. WHA Premium Growth | Impact Growth vs. Golden Ventures Leasehold | Impact Growth vs. LH Shopping Centers |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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