Correlation Between AMC Entertainment and Fangdd Network
Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and Fangdd Network 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 Fangdd Network 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 Fangdd Network Group, you can compare the effects of market volatilities on AMC Entertainment and Fangdd Network 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 Fangdd Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and Fangdd Network.
Diversification Opportunities for AMC Entertainment and Fangdd Network
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMC and Fangdd is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Fangdd Network Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fangdd Network Group 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 Fangdd Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fangdd Network Group has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Fangdd Network go up and down completely randomly.
Pair Corralation between AMC Entertainment and Fangdd Network
Considering the 90-day investment horizon AMC Entertainment Holdings is expected to under-perform the Fangdd Network. But the stock apears to be less risky and, when comparing its historical volatility, AMC Entertainment Holdings is 2.58 times less risky than Fangdd Network. The stock trades about -0.03 of its potential returns per unit of risk. The Fangdd Network Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,815 in Fangdd Network Group on August 28, 2024 and sell it today you would lose (1,761) from holding Fangdd Network Group or give up 97.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Entertainment Holdings vs. Fangdd Network Group
Performance |
| Timeline |
| AMC Entertainment |
| Fangdd Network Group |
AMC Entertainment and Fangdd Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Entertainment and Fangdd Network
The main advantage of trading using opposite AMC Entertainment and Fangdd Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Entertainment position performs unexpectedly, Fangdd Network 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 Fangdd Network will offset losses from the drop in Fangdd Network's long position.| AMC Entertainment vs. Cinemark Holdings | AMC Entertainment vs. Roku Inc | AMC Entertainment vs. Netflix | AMC Entertainment vs. Paramount Global Class |
| Fangdd Network vs. MDJM | Fangdd Network vs. Southcorp Capital | Fangdd Network vs. Frp Holdings Ord | Fangdd Network vs. Ucommune International |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |