Correlation Between Imax Corp and Marcus

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

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

Diversification Opportunities for Imax Corp and Marcus

0.07

Correlation Coefficient

Imax Corp  Marcus

Significant diversification

The 3 months correlation between Imax and Marcus is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus and Imax Corp 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 Imax Corp are associated (or correlated) with Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of Imax Corp i.e., Imax Corp and Marcus go up and down completely randomly.

Pair Corralation between Imax Corp and Marcus

Given the investment horizon of 90 days Imax Corp is expected to generate 0.82 times more return on investment than Marcus. However, Imax Corp is 1.22 times less risky than Marcus. It trades about 0.09 of its potential returns per unit of risk. Marcus is currently generating about -0.13 per unit of risk. If you would invest  2,509  in Imax Corp on December 27, 2024 and sell it today you would earn a total of  228.00  from holding Imax Corp or generate 9.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Imax Corp  vs.  Marcus

Imax Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Imax Corp are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Imax Corp may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Marcus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Marcus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Imax Corp and Marcus

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

The idea behind Imax Corp and Marcus 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 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.