Correlation Between AMC Entertainment and Sphere Entertainment
Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and Sphere Entertainment 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 Sphere Entertainment 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 Sphere Entertainment Co, you can compare the effects of market volatilities on AMC Entertainment and Sphere Entertainment 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 Sphere Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and Sphere Entertainment.
Diversification Opportunities for AMC Entertainment and Sphere Entertainment
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMC and Sphere is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Sphere Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sphere Entertainment 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 Sphere Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sphere Entertainment has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Sphere Entertainment go up and down completely randomly.
Pair Corralation between AMC Entertainment and Sphere Entertainment
Considering the 90-day investment horizon AMC Entertainment Holdings is expected to under-perform the Sphere Entertainment. In addition to that, AMC Entertainment is 2.25 times more volatile than Sphere Entertainment Co. It trades about -0.04 of its total potential returns per unit of risk. Sphere Entertainment Co is currently generating about 0.02 per unit of volatility. If you would invest 3,674 in Sphere Entertainment Co on September 12, 2024 and sell it today you would earn a total of 123.50 from holding Sphere Entertainment Co or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Entertainment Holdings vs. Sphere Entertainment Co
Performance |
| Timeline |
| AMC Entertainment |
| Sphere Entertainment |
AMC Entertainment and Sphere Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Entertainment and Sphere Entertainment
The main advantage of trading using opposite AMC Entertainment and Sphere Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Entertainment position performs unexpectedly, Sphere Entertainment 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 Sphere Entertainment will offset losses from the drop in Sphere Entertainment's long position.| AMC Entertainment vs. Cinemark Holdings | AMC Entertainment vs. Roku Inc | AMC Entertainment vs. Netflix | AMC Entertainment vs. Paramount Global Class |
| Sphere Entertainment vs. Aeye Inc | Sphere Entertainment vs. Ep Emerging Markets | Sphere Entertainment vs. ALPS Emerging Sector | Sphere Entertainment vs. First Physicians Capital |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |