Correlation Between AMC Networks and American Picture
Can any of the company-specific risk be diversified away by investing in both AMC Networks and American Picture 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 Networks and American Picture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Networks and American Picture House, you can compare the effects of market volatilities on AMC Networks and American Picture 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 Networks with a short position of American Picture. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Networks and American Picture.
Diversification Opportunities for AMC Networks and American Picture
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMC and American is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding AMC Networks and American Picture House in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Picture House and AMC Networks 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 Networks are associated (or correlated) with American Picture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Picture House has no effect on the direction of AMC Networks i.e., AMC Networks and American Picture go up and down completely randomly.
Pair Corralation between AMC Networks and American Picture
Given the investment horizon of 90 days AMC Networks is expected to generate 0.86 times more return on investment than American Picture. However, AMC Networks is 1.17 times less risky than American Picture. It trades about 0.18 of its potential returns per unit of risk. American Picture House is currently generating about -0.09 per unit of risk. If you would invest 820.00 in AMC Networks on August 30, 2024 and sell it today you would earn a total of 127.00 from holding AMC Networks or generate 15.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Networks vs. American Picture House
Performance |
| Timeline |
| AMC Networks |
| American Picture House |
AMC Networks and American Picture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Networks and American Picture
The main advantage of trading using opposite AMC Networks and American Picture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Networks position performs unexpectedly, American Picture 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 American Picture will offset losses from the drop in American Picture's long position.| AMC Networks vs. Nexstar Broadcasting Group | AMC Networks vs. News Corp B | AMC Networks vs. Fox Corp Class | AMC Networks vs. Liberty Media |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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