Correlation Between AMC Entertainment and Marcus
Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and Marcus 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 Marcus 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 Marcus, you can compare the effects of market volatilities on AMC Entertainment and Marcus 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 Marcus. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and Marcus.
Diversification Opportunities for AMC Entertainment and Marcus
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMC and Marcus is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus 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 Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Marcus go up and down completely randomly.
Pair Corralation between AMC Entertainment and Marcus
Considering the 90-day investment horizon AMC Entertainment Holdings is expected to under-perform the Marcus. In addition to that, AMC Entertainment is 4.17 times more volatile than Marcus. It trades about -0.03 of its total potential returns per unit of risk. Marcus is currently generating about 0.05 per unit of volatility. If you would invest 1,551 in Marcus on August 28, 2024 and sell it today you would earn a total of 659.00 from holding Marcus or generate 42.49% 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. Marcus
Performance |
| Timeline |
| AMC Entertainment |
| Marcus |
AMC Entertainment and Marcus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Entertainment and Marcus
The main advantage of trading using opposite AMC Entertainment and Marcus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Entertainment position performs unexpectedly, Marcus 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 Marcus will offset losses from the drop in Marcus' long position.| AMC Entertainment vs. Cinemark Holdings | AMC Entertainment vs. Roku Inc | AMC Entertainment vs. Netflix | AMC Entertainment vs. Paramount Global Class |
| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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