Correlation Between Mosaic and Imax Corp

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

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

Diversification Opportunities for Mosaic and Imax Corp

0.54

Correlation Coefficient

Mosaic  Imax Corp

Very weak diversification

The 3 months correlation between Mosaic and Imax is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding The Mosaic and Imax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imax Corp and Mosaic 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 The Mosaic 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 Mosaic i.e., Mosaic and Imax Corp go up and down completely randomly.

Pair Corralation between Mosaic and Imax Corp

Considering the 90-day investment horizon The Mosaic is expected to under-perform the Imax Corp. In addition to that, Mosaic is 1.34 times more volatile than Imax Corp. It trades about -0.05 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 Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

The Mosaic  vs.  Imax Corp

Mosaic

Risk-Adjusted Performance

Weakest

Over the last 90 days The Mosaic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private 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 Mosaic and Imax Corp

The main advantage of trading using opposite Mosaic and Imax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mosaic 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 The Mosaic 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..