Correlation Between Lionsgate Studios and Bank

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

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

Diversification Opportunities for Lionsgate Studios and Bank

0.1

Correlation Coefficient

Lionsgate Studios  Bank

Average diversification

The 3 months correlation between Lionsgate and Bank is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Lionsgate Studios Corp and Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank and Lionsgate Studios 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 Lionsgate Studios Corp are associated (or correlated) with Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank has no effect on the direction of Lionsgate Studios i.e., Lionsgate Studios and Bank go up and down completely randomly.

Pair Corralation between Lionsgate Studios and Bank

If you would invest  682.00  in Lionsgate Studios Corp on September 12, 2024 and sell it today you would earn a total of  38.00  from holding Lionsgate Studios Corp or generate 5.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Lionsgate Studios Corp  vs.  Bank

Lionsgate Studios Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lionsgate Studios Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile basic indicators, Lionsgate Studios may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Bank

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Lionsgate Studios and Bank

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

The idea behind Lionsgate Studios Corp and Bank 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.