Correlation Between Lionsgate Studios and Grupo Financiero

Can any of the company-specific risk be diversified away by investing in both Lionsgate Studios and Grupo Financiero 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 Grupo Financiero 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 Grupo Financiero Inbursa, you can compare the effects of market volatilities on Lionsgate Studios and Grupo Financiero 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 Grupo Financiero. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lionsgate Studios and Grupo Financiero.

Diversification Opportunities for Lionsgate Studios and Grupo Financiero

0.5

Correlation Coefficient

Lionsgate Studios  Grupo Financiero

Very weak diversification

The 3 months correlation between Lionsgate and Grupo is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lionsgate Studios Corp and Grupo Financiero Inbursa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Financiero Inbursa 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 Grupo Financiero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Financiero Inbursa has no effect on the direction of Lionsgate Studios i.e., Lionsgate Studios and Grupo Financiero go up and down completely randomly.

Pair Corralation between Lionsgate Studios and Grupo Financiero

Given the investment horizon of 90 days Lionsgate Studios Corp is expected to generate 1.15 times more return on investment than Grupo Financiero. However, Lionsgate Studios is 1.15 times more volatile than Grupo Financiero Inbursa. It trades about 0.03 of its potential returns per unit of risk. Grupo Financiero Inbursa is currently generating about 0.0 per unit of risk. If you would invest  726.00  in Lionsgate Studios Corp on December 29, 2024 and sell it today you would earn a total of  17.00  from holding Lionsgate Studios Corp or generate 2.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.83%
Values	Daily Returns

Lionsgate Studios Corp  vs.  Grupo Financiero Inbursa

Lionsgate Studios Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Lionsgate Studios Corp are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Lionsgate Studios is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Grupo Financiero Inbursa

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grupo Financiero Inbursa has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Grupo Financiero 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 Grupo Financiero

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

The idea behind Lionsgate Studios Corp and Grupo Financiero Inbursa 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.