Are Lions (NYSE:LGF) investors switching to Imax Corp (NYSE:IMAX)?
 | By Rifka Kats | Macroaxis Story |
As many rational traders are trying to avoid communication services space, it makes sense to break down Imax Corp a little further and understand how it stands against Lions Gate and other similar entities. We are going to inspect some of the competitive aspects of both Imax Corp and Lions.
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Reviewed by Ellen Johnson
By analyzing existing basic indicators between Imax Corp and Lions, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Lions with a short position in Imax Corp. Check out our pair correlation module for more information.
Let's begin by analyzing the assets.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Imax Corp has an asset utilization ratio of 22.04 percent. This suggests that the company is making $0.22 for each dollar of assets. An increasing asset utilization means that Imax Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Imax or Marcus is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step. 
How important is Imax Corp's Liquidity
Imax Corp financial leverage refers to using borrowed capital as a funding source to finance Imax Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Imax Corp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Imax Corp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Imax Corp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Imax Corp's total debt and its cash.
Correlation Between Imax and Marcus
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Imax Corp together with similar or unrelated positions with a negative correlation. For example, you can also add Marcus to your portfolio. If Marcus is not perfectly correlated to Imax Corp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Imax Corp, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Imax Corp and Marcus in your portfolio? Please note if you are using this as a pair-trade strategy between Imax Corp and Marcus, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check pair correlation details between IMAX and MCS for more information.Building efficient market-beating portfolios requires time, education, and a lot of computing power!
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Imax Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.