Correlation Between Guardian Pharmacy and Imax Corp

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

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

Diversification Opportunities for Guardian Pharmacy and Imax Corp

-0.21

Correlation Coefficient

Guardian Pharmacy  Imax Corp

Very good diversification

The 3 months correlation between Guardian and Imax is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Guardian Pharmacy Services, and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax Corp and Guardian Pharmacy 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 Guardian Pharmacy Services, 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 Guardian Pharmacy i.e., Guardian Pharmacy and Imax Corp go up and down completely randomly.

Pair Corralation between Guardian Pharmacy and Imax Corp

Given the investment horizon of 90 days Guardian Pharmacy Services, is expected to under-perform the Imax Corp. In addition to that, Guardian Pharmacy is 1.84 times more volatile than Imax Corp. It trades about -0.03 of its total potential returns per unit of risk. Imax Corp is currently generating about -0.04 per unit of volatility. If you would invest  2,714  in Imax Corp on May 17, 2025 and sell it today you would lose (148.00) from holding Imax Corp or give up 5.45% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Guardian Pharmacy Services,  vs.  Imax Corp

Guardian Pharmacy

Risk-Adjusted Performance

Weakest

Over the last 90 days Guardian Pharmacy Services, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Imax Corp

Risk-Adjusted Performance

Weakest

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

Pair Trading with Guardian Pharmacy and Imax Corp

The main advantage of trading using opposite Guardian Pharmacy and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guardian Pharmacy 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 Guardian Pharmacy Services, 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.