Correlation Between Maxx Sports and American Films

Can any of the company-specific risk be diversified away by investing in both Maxx Sports and American Films 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 Maxx Sports and American Films into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Maxx Sports TV and American Films, you can compare the effects of market volatilities on Maxx Sports and American Films 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 Maxx Sports with a short position of American Films. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxx Sports and American Films.

Diversification Opportunities for Maxx Sports and American Films

0.0

Correlation Coefficient

Maxx Sports  American Films

Pay attention - limited upside

The 3 months correlation between Maxx and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maxx Sports TV and American Films in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Films and Maxx Sports 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 Maxx Sports TV are associated (or correlated) with American Films. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Films has no effect on the direction of Maxx Sports i.e., Maxx Sports and American Films go up and down completely randomly.

Pair Corralation between Maxx Sports and American Films

If you would invest  9.97  in American Films on December 21, 2024 and sell it today you would lose (1.97) from holding American Films or give up 19.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Maxx Sports TV  vs.  American Films

Maxx Sports TV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maxx Sports TV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Maxx Sports is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

American Films

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in American Films are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite weak technical and fundamental indicators, American Films disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Maxx Sports and American Films

The main advantage of trading using opposite Maxx Sports and American Films positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxx Sports position performs unexpectedly, American Films 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 American Films will offset losses from the drop in American Films' long position.

The idea behind Maxx Sports TV and American Films pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.