Correlation Between Teamlease Services and Imagicaaworld Entertainment

Can any of the company-specific risk be diversified away by investing in both Teamlease Services and Imagicaaworld Entertainment 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 Teamlease Services and Imagicaaworld Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Teamlease Services Limited and Imagicaaworld Entertainment Limited, you can compare the effects of market volatilities on Teamlease Services and Imagicaaworld Entertainment 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 Teamlease Services with a short position of Imagicaaworld Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teamlease Services and Imagicaaworld Entertainment.

Diversification Opportunities for Teamlease Services and Imagicaaworld Entertainment

0.29

Correlation Coefficient

Teamlease Services  Imagicaaworld Entertainment

Modest diversification

The 3 months correlation between Teamlease and Imagicaaworld is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Teamlease Services Limited and Imagicaaworld Entertainment Li in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imagicaaworld Entertainment and Teamlease Services 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 Teamlease Services Limited are associated (or correlated) with Imagicaaworld Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imagicaaworld Entertainment has no effect on the direction of Teamlease Services i.e., Teamlease Services and Imagicaaworld Entertainment go up and down completely randomly.

Pair Corralation between Teamlease Services and Imagicaaworld Entertainment

Assuming the 90 days trading horizon Teamlease Services Limited is expected to under-perform the Imagicaaworld Entertainment. But the stock apears to be less risky and, when comparing its historical volatility, Teamlease Services Limited is 1.22 times less risky than Imagicaaworld Entertainment. The stock trades about -0.01 of its potential returns per unit of risk. The Imagicaaworld Entertainment Limited is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  6,547  in Imagicaaworld Entertainment Limited on April 25, 2025 and sell it today you would earn a total of  152.00  from holding Imagicaaworld Entertainment Limited or generate 2.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Teamlease Services Limited  vs.  Imagicaaworld Entertainment Li

Teamlease Services

Risk-Adjusted Performance

Very Weak

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

Imagicaaworld Entertainment

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Imagicaaworld Entertainment Limited are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental indicators, Imagicaaworld Entertainment is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Teamlease Services and Imagicaaworld Entertainment

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

The idea behind Teamlease Services Limited and Imagicaaworld Entertainment Limited 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.