Correlation Between AMC Entertainment and Haoxi Health
Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and Haoxi Health 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 Haoxi Health 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 Haoxi Health Technology, you can compare the effects of market volatilities on AMC Entertainment and Haoxi Health 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 Haoxi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and Haoxi Health.
Diversification Opportunities for AMC Entertainment and Haoxi Health
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMC and Haoxi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Haoxi Health Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haoxi Health Technology 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 Haoxi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haoxi Health Technology has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Haoxi Health go up and down completely randomly.
Pair Corralation between AMC Entertainment and Haoxi Health
Considering the 90-day investment horizon AMC Entertainment Holdings is expected to generate 0.7 times more return on investment than Haoxi Health. However, AMC Entertainment Holdings is 1.43 times less risky than Haoxi Health. It trades about 0.04 of its potential returns per unit of risk. Haoxi Health Technology is currently generating about -0.09 per unit of risk. If you would invest 432.00 in AMC Entertainment Holdings on August 27, 2024 and sell it today you would earn a total of 23.00 from holding AMC Entertainment Holdings or generate 5.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Entertainment Holdings vs. Haoxi Health Technology
Performance |
| Timeline |
| AMC Entertainment |
| Haoxi Health Technology |
AMC Entertainment and Haoxi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Entertainment and Haoxi Health
The main advantage of trading using opposite AMC Entertainment and Haoxi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Entertainment position performs unexpectedly, Haoxi Health 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 Haoxi Health will offset losses from the drop in Haoxi Health's long position.| AMC Entertainment vs. ADTRAN Inc | AMC Entertainment vs. Belden Inc | AMC Entertainment vs. ADC Therapeutics SA | AMC Entertainment vs. Comtech Telecommunications Corp |
| Haoxi Health vs. CuriosityStream | Haoxi Health vs. iQIYI Inc | Haoxi Health vs. Sea | Haoxi Health vs. Scienjoy Holding Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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