Correlation Between AMC Entertainment and E W
Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and E W 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 E W 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 E W Scripps, you can compare the effects of market volatilities on AMC Entertainment and E W 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 E W. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and E W.
Diversification Opportunities for AMC Entertainment and E W
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMC and SSP is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and E W Scripps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E W Scripps 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 E W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E W Scripps has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and E W go up and down completely randomly.
Pair Corralation between AMC Entertainment and E W
Considering the 90-day investment horizon AMC Entertainment Holdings is expected to under-perform the E W. In addition to that, AMC Entertainment is 1.28 times more volatile than E W Scripps. It trades about -0.04 of its total potential returns per unit of risk. E W Scripps is currently generating about -0.04 per unit of volatility. If you would invest 1,484 in E W Scripps on August 27, 2024 and sell it today you would lose (1,274) from holding E W Scripps or give up 85.85% 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. E W Scripps
Performance |
| Timeline |
| AMC Entertainment |
| E W Scripps |
AMC Entertainment and E W Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Entertainment and E W
The main advantage of trading using opposite AMC Entertainment and E W positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Entertainment position performs unexpectedly, E W 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 E W will offset losses from the drop in E W's long position.| AMC Entertainment vs. Cinemark Holdings | AMC Entertainment vs. Roku Inc | AMC Entertainment vs. Netflix | AMC Entertainment vs. Paramount Global 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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