Correlation Between Corus Entertainment and American Picture

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

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

Diversification Opportunities for Corus Entertainment and American Picture

0.0

Correlation Coefficient

Corus Entertainment  American Picture

Pay attention - limited upside

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

Pair Corralation between Corus Entertainment and American Picture

If you would invest (100.00) in Corus Entertainment on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Corus Entertainment or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Corus Entertainment  vs.  American Picture House

Corus Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Corus Entertainment has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Corus Entertainment is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

American Picture House

Risk-Adjusted Performance

Very Weak

Over the last 90 days American Picture House has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, American Picture is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Corus Entertainment and American Picture

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

The idea behind Corus Entertainment and American Picture House 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.

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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.