Correlation Between Imax Corp and JetAI

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

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

Diversification Opportunities for Imax Corp and JetAI

-0.31

Correlation Coefficient

Imax Corp  JetAI

Very good diversification

The 3 months correlation between Imax and JetAI is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Imax Corp and JetAI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetAI Inc 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 JetAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetAI Inc has no effect on the direction of Imax Corp i.e., Imax Corp and JetAI go up and down completely randomly.

Pair Corralation between Imax Corp and JetAI

Given the investment horizon of 90 days Imax Corp is expected to generate 0.46 times more return on investment than JetAI. However, Imax Corp is 2.16 times less risky than JetAI. It trades about 0.07 of its potential returns per unit of risk. JetAI Inc is currently generating about -0.01 per unit of risk. If you would invest  2,415  in Imax Corp on May 1, 2025 and sell it today you would earn a total of  184.00  from holding Imax Corp or generate 7.62% return on investment over 90 days.

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

Imax Corp  vs.  JetAI Inc

Imax Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Imax Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Imax Corp may actually be approaching a critical reversion point that can send shares even higher in August 2025.

JetAI Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days JetAI Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, JetAI is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Imax Corp and JetAI

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

The idea behind Imax Corp and JetAI Inc 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.