Correlation Between Paramount Global and Imagination
Can any of the company-specific risk be diversified away by investing in both Paramount Global and Imagination 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 Paramount Global and Imagination into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Paramount Global Class and Imagination TV, you can compare the effects of market volatilities on Paramount Global and Imagination 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 Paramount Global with a short position of Imagination. Check out your portfolio center. Please also check ongoing floating volatility patterns of Paramount Global and Imagination.
Diversification Opportunities for Paramount Global and Imagination
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Paramount and Imagination is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Paramount Global Class and Imagination TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imagination TV and Paramount Global 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 Paramount Global Class are associated (or correlated) with Imagination. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imagination TV has no effect on the direction of Paramount Global i.e., Paramount Global and Imagination go up and down completely randomly.
Pair Corralation between Paramount Global and Imagination
If you would invest 1,047 in Paramount Global Class on August 30, 2024 and sell it today you would earn a total of 30.00 from holding Paramount Global Class or generate 2.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Paramount Global Class vs. Imagination TV
Performance |
| Timeline |
| Paramount Global Class |
| Imagination TV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Paramount Global and Imagination Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Paramount Global and Imagination
The main advantage of trading using opposite Paramount Global and Imagination positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paramount Global position performs unexpectedly, Imagination 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 Imagination will offset losses from the drop in Imagination's long position.| Paramount Global vs. Walt Disney | Paramount Global vs. Roku Inc | Paramount Global vs. Netflix | Paramount Global vs. AMC Entertainment Holdings |
| Imagination vs. Walt Disney | Imagination vs. Roku Inc | Imagination vs. AMC Entertainment Holdings | Imagination vs. Paramount Global Class |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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