Correlation Between AMC Entertainment and Tegna
Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and Tegna 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 Tegna 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 Tegna Inc, you can compare the effects of market volatilities on AMC Entertainment and Tegna 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 Tegna. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and Tegna.
Diversification Opportunities for AMC Entertainment and Tegna
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMC and Tegna is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Tegna Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tegna Inc 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 Tegna. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tegna Inc has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Tegna go up and down completely randomly.
Pair Corralation between AMC Entertainment and Tegna
Considering the 90-day investment horizon AMC Entertainment Holdings is expected to under-perform the Tegna. In addition to that, AMC Entertainment is 3.77 times more volatile than Tegna Inc. It trades about -0.04 of its total potential returns per unit of risk. Tegna Inc is currently generating about 0.01 per unit of volatility. If you would invest 1,883 in Tegna Inc on August 23, 2024 and sell it today you would lose (31.00) from holding Tegna Inc or give up 1.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Entertainment Holdings vs. Tegna Inc
Performance |
| Timeline |
| AMC Entertainment |
| Tegna Inc |
AMC Entertainment and Tegna Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Entertainment and Tegna
The main advantage of trading using opposite AMC Entertainment and Tegna positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Entertainment position performs unexpectedly, Tegna 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 Tegna will offset losses from the drop in Tegna's long position.| AMC Entertainment vs. Cinemark Holdings | AMC Entertainment vs. Roku Inc | AMC Entertainment vs. Netflix | AMC Entertainment vs. Paramount Global Class |
| Tegna vs. E W Scripps | Tegna vs. Gray Television | Tegna vs. iHeartMedia Class A | Tegna vs. Cumulus Media 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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