Correlation Between Lionsgate Studios and MNB Holdings

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

Diversification Opportunities for Lionsgate Studios and MNB Holdings

-0.04

Correlation Coefficient

Lionsgate Studios  MNB Holdings

Good diversification

The 3 months correlation between Lionsgate and MNB is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lionsgate Studios Corp and MNB Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MNB Holdings Corp 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 MNB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MNB Holdings Corp has no effect on the direction of Lionsgate Studios i.e., Lionsgate Studios and MNB Holdings go up and down completely randomly.

Pair Corralation between Lionsgate Studios and MNB Holdings

Given the investment horizon of 90 days Lionsgate Studios is expected to generate 2.84 times less return on investment than MNB Holdings. In addition to that, Lionsgate Studios is 1.28 times more volatile than MNB Holdings Corp. It trades about 0.03 of its total potential returns per unit of risk. MNB Holdings Corp is currently generating about 0.1 per unit of volatility. If you would invest  2,500  in MNB Holdings Corp on December 28, 2024 and sell it today you would earn a total of  361.00  from holding MNB Holdings Corp or generate 14.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Lionsgate Studios Corp  vs.  MNB Holdings Corp

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 newest stock price disarray, may contribute to short-term losses for the investors.

MNB Holdings Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MNB Holdings Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting fundamental drivers, MNB Holdings displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lionsgate Studios and MNB Holdings

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

The idea behind Lionsgate Studios Corp and MNB Holdings Corp 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..