Correlation Between AMC Entertainment and ZW Data
Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and ZW Data 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 AMC Entertainment and ZW Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Entertainment Holdings and ZW Data Action, you can compare the effects of market volatilities on AMC Entertainment and ZW Data 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 AMC Entertainment with a short position of ZW Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and ZW Data.
Diversification Opportunities for AMC Entertainment and ZW Data
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AMC and CNET is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and ZW Data Action in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZW Data Action and AMC Entertainment 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 AMC Entertainment Holdings are associated (or correlated) with ZW Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZW Data Action has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and ZW Data go up and down completely randomly.
Pair Corralation between AMC Entertainment and ZW Data
Considering the 90-day investment horizon AMC Entertainment Holdings is expected to under-perform the ZW Data. In addition to that, AMC Entertainment is 1.1 times more volatile than ZW Data Action. It trades about -0.05 of its total potential returns per unit of risk. ZW Data Action is currently generating about -0.02 per unit of volatility. If you would invest 628.00 in ZW Data Action on January 11, 2025 and sell it today you would lose (480.00) from holding ZW Data Action or give up 76.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
AMC Entertainment Holdings vs. ZW Data Action
Performance |
| Timeline |
| AMC Entertainment |
| ZW Data Action |
AMC Entertainment and ZW Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Entertainment and ZW Data
The main advantage of trading using opposite AMC Entertainment and ZW Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Entertainment position performs unexpectedly, ZW Data 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 ZW Data will offset losses from the drop in ZW Data's long position.| AMC Entertainment vs. Cinemark Holdings | ||
| AMC Entertainment vs. Roku Inc | ||
| AMC Entertainment vs. Netflix | ||
| AMC Entertainment vs. Paramount Global Class |
| ZW Data vs. Fluent Inc | ||
| ZW Data vs. QuinStreet | ||
| ZW Data vs. Direct Digital Holdings | ||
| ZW Data vs. Mirriad Advertising plc |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |