Correlation Between Endeavor Group and Imax Corp

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

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

Diversification Opportunities for Endeavor Group and Imax Corp

-0.31

Correlation Coefficient

Endeavor Group  Imax Corp

Very good diversification

The 3 months correlation between Endeavor and Imax is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Endeavor Group Holdings and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax Corp and Endeavor Group 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 Endeavor Group Holdings 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 Endeavor Group i.e., Endeavor Group and Imax Corp go up and down completely randomly.

Pair Corralation between Endeavor Group and Imax Corp

If you would invest  2,234  in Imax Corp on February 18, 2025 and sell it today you would earn a total of  489.00  from holding Imax Corp or generate 21.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Endeavor Group Holdings  vs.  Imax Corp

Endeavor Group Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Endeavor Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest abnormal performance, the Stock's fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Imax Corp

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Imax Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Imax Corp is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Endeavor Group and Imax Corp

The main advantage of trading using opposite Endeavor Group and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endeavor Group 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 Endeavor Group Holdings 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.