Correlation Between 91529YAL0 and Imax Corp

Can any of the company-specific risk be diversified away by investing in both 91529YAL0 and Imax Corp 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 91529YAL0 and Imax Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between UNUM GROUP 3875 and Imax Corp, you can compare the effects of market volatilities on 91529YAL0 and Imax Corp 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 91529YAL0 with a short position of Imax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of 91529YAL0 and Imax Corp.

Diversification Opportunities for 91529YAL0 and Imax Corp

-0.17

Correlation Coefficient

91529YAL0  Imax Corp

Good diversification

The 3 months correlation between 91529YAL0 and Imax is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding UNUM GROUP 3875 and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax Corp and 91529YAL0 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 UNUM GROUP 3875 are associated (or correlated) with Imax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imax Corp has no effect on the direction of 91529YAL0 i.e., 91529YAL0 and Imax Corp go up and down completely randomly.

Pair Corralation between 91529YAL0 and Imax Corp

Assuming the 90 days trading horizon UNUM GROUP 3875 is expected to under-perform the Imax Corp. But the bond apears to be less risky and, when comparing its historical volatility, UNUM GROUP 3875 is 3.25 times less risky than Imax Corp. The bond trades about -0.1 of its potential returns per unit of risk. The Imax Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  2,125  in Imax Corp on October 12, 2024 and sell it today you would earn a total of  232.00  from holding Imax Corp or generate 10.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	77.05%
Values	Daily Returns

UNUM GROUP 3875  vs.  Imax Corp

UNUM GROUP 3875

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days UNUM GROUP 3875 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 91529YAL0 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Imax Corp

Risk-Adjusted Performance

6 of 100

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 February 2025.

Pair Trading with 91529YAL0 and Imax Corp

The main advantage of trading using opposite 91529YAL0 and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 91529YAL0 position performs unexpectedly, Imax Corp 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 Imax Corp will offset losses from the drop in Imax Corp's long position.

The idea behind UNUM GROUP 3875 and Imax 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.