Correlation Between Major Cineplex and MFC Strategic

Can any of the company-specific risk be diversified away by investing in both Major Cineplex and MFC Strategic 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 Major Cineplex and MFC Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Major Cineplex Lifestyle and MFC Strategic Storage, you can compare the effects of market volatilities on Major Cineplex and MFC Strategic 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 Major Cineplex with a short position of MFC Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Major Cineplex and MFC Strategic.

Diversification Opportunities for Major Cineplex and MFC Strategic

-0.01

Correlation Coefficient

Major Cineplex  MFC Strategic

Good diversification

The 3 months correlation between Major and MFC is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Major Cineplex Lifestyle and MFC Strategic Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MFC Strategic Storage and Major Cineplex 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 Major Cineplex Lifestyle are associated (or correlated) with MFC Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MFC Strategic Storage has no effect on the direction of Major Cineplex i.e., Major Cineplex and MFC Strategic go up and down completely randomly.

Pair Corralation between Major Cineplex and MFC Strategic

Assuming the 90 days trading horizon Major Cineplex Lifestyle is expected to generate 1.19 times more return on investment than MFC Strategic. However, Major Cineplex is 1.19 times more volatile than MFC Strategic Storage. It trades about 0.12 of its potential returns per unit of risk. MFC Strategic Storage is currently generating about 0.0 per unit of risk. If you would invest  386.00  in Major Cineplex Lifestyle on April 24, 2025 and sell it today you would earn a total of  26.00  from holding Major Cineplex Lifestyle or generate 6.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.28%
Values	Daily Returns

Major Cineplex Lifestyle  vs.  MFC Strategic Storage

Major Cineplex Lifestyle

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Major Cineplex Lifestyle are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Major Cineplex may actually be approaching a critical reversion point that can send shares even higher in August 2025.

MFC Strategic Storage

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Major Cineplex and MFC Strategic

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

The idea behind Major Cineplex Lifestyle and MFC Strategic Storage 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.