Correlation Between AMC Entertainment and Luokung Technology
Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and Luokung Technology 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 Luokung Technology 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 Luokung Technology Corp, you can compare the effects of market volatilities on AMC Entertainment and Luokung Technology 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 Luokung Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and Luokung Technology.
Diversification Opportunities for AMC Entertainment and Luokung Technology
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMC and Luokung is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Luokung Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luokung Technology Corp 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 Luokung Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luokung Technology Corp has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Luokung Technology go up and down completely randomly.
Pair Corralation between AMC Entertainment and Luokung Technology
Considering the 90-day investment horizon AMC Entertainment Holdings is expected to under-perform the Luokung Technology. But the stock apears to be less risky and, when comparing its historical volatility, AMC Entertainment Holdings is 2.57 times less risky than Luokung Technology. The stock trades about -0.23 of its potential returns per unit of risk. The Luokung Technology Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 160.00 in Luokung Technology Corp on October 22, 2024 and sell it today you would earn a total of 9.00 from holding Luokung Technology Corp or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Entertainment Holdings vs. Luokung Technology Corp
Performance |
| Timeline |
| AMC Entertainment |
| Luokung Technology Corp |
AMC Entertainment and Luokung Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Entertainment and Luokung Technology
The main advantage of trading using opposite AMC Entertainment and Luokung Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Entertainment position performs unexpectedly, Luokung Technology 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 Luokung Technology will offset losses from the drop in Luokung Technology's long position.| AMC Entertainment vs. Cinemark Holdings | AMC Entertainment vs. Roku Inc | AMC Entertainment vs. Netflix | AMC Entertainment vs. Paramount Global Class |
| Luokung Technology vs. Auddia Inc | Luokung Technology vs. Freight Technologies | Luokung Technology vs. CXApp Inc | Luokung Technology vs. Trust Stamp |
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.
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