Correlation Between Imax Corp and Flex
Can any of the company-specific risk be diversified away by investing in both Imax Corp and Flex 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 Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Imax Corp and Flex, you can compare the effects of market volatilities on Imax Corp and Flex 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 Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and Flex.
Diversification Opportunities for Imax Corp and Flex
Poor diversification
The 3 months correlation between Imax and Flex is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and Flex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flex 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 Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flex has no effect on the direction of Imax Corp i.e., Imax Corp and Flex go up and down completely randomly.
Pair Corralation between Imax Corp and Flex
Given the investment horizon of 90 days Imax Corp is expected to generate 5.07 times less return on investment than Flex. In addition to that, Imax Corp is 1.02 times more volatile than Flex. It trades about 0.08 of its total potential returns per unit of risk. Flex is currently generating about 0.44 per unit of volatility. If you would invest 4,635 in Flex on April 22, 2025 and sell it today you would earn a total of 741.00 from holding Flex or generate 15.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Imax Corp vs. Flex
Performance |
| Timeline |
| Imax Corp |
| Flex |
Imax Corp and Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Imax Corp and Flex
The main advantage of trading using opposite Imax Corp and Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Imax Corp position performs unexpectedly, Flex 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 Flex will offset losses from the drop in Flex's long position.| Imax Corp vs. Cinemark Holdings | Imax Corp vs. News Corp A | Imax Corp vs. Marcus | Imax Corp vs. Liberty Media |
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 CEOs Directory module to screen CEOs from public companies around the world.
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