Correlation Between Imax Corp and Charter Communications

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

By analyzing existing cross correlation between Imax Corp and Charter Communications, you can compare the effects of market volatilities on Imax Corp and Charter Communications 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 Charter Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Imax Corp and Charter Communications.

Diversification Opportunities for Imax Corp and Charter Communications

0.13

Correlation Coefficient

Imax Corp  Charter Communications

Average diversification

The 3 months correlation between Imax and Charter is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and Charter Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charter Communications 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 Charter Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charter Communications has no effect on the direction of Imax Corp i.e., Imax Corp and Charter Communications go up and down completely randomly.

Pair Corralation between Imax Corp and Charter Communications

Given the investment horizon of 90 days Imax Corp is expected to generate 0.6 times more return on investment than Charter Communications. However, Imax Corp is 1.65 times less risky than Charter Communications. It trades about 0.04 of its potential returns per unit of risk. Charter Communications is currently generating about -0.2 per unit of risk. If you would invest  2,434  in Imax Corp on May 3, 2025 and sell it today you would earn a total of  86.00  from holding Imax Corp or generate 3.53% return on investment over 90 days.

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

Imax Corp  vs.  Charter Communications

Imax Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Imax Corp are ranked lower than 3 (%) 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 latest stock price disturbance, may contribute to short-term losses for the investors.

Charter Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Charter Communications has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Imax Corp and Charter Communications

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

The idea behind Imax Corp and Charter Communications 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.