Correlation Between AMC Networks and Atlanta Braves
Can any of the company-specific risk be diversified away by investing in both AMC Networks and Atlanta Braves 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 Atlanta Braves into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Networks and Atlanta Braves Holdings,, you can compare the effects of market volatilities on AMC Networks and Atlanta Braves 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 Atlanta Braves. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Networks and Atlanta Braves.
Diversification Opportunities for AMC Networks and Atlanta Braves
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AMC and Atlanta is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding AMC Networks and Atlanta Braves Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanta Braves Holdings, 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 Atlanta Braves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanta Braves Holdings, has no effect on the direction of AMC Networks i.e., AMC Networks and Atlanta Braves go up and down completely randomly.
Pair Corralation between AMC Networks and Atlanta Braves
Given the investment horizon of 90 days AMC Networks is expected to under-perform the Atlanta Braves. In addition to that, AMC Networks is 3.16 times more volatile than Atlanta Braves Holdings,. It trades about -0.01 of its total potential returns per unit of risk. Atlanta Braves Holdings, is currently generating about 0.04 per unit of volatility. If you would invest 3,361 in Atlanta Braves Holdings, on August 27, 2024 and sell it today you would earn a total of 836.00 from holding Atlanta Braves Holdings, or generate 24.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Networks vs. Atlanta Braves Holdings,
Performance |
| Timeline |
| AMC Networks |
| Atlanta Braves Holdings, |
AMC Networks and Atlanta Braves Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Networks and Atlanta Braves
The main advantage of trading using opposite AMC Networks and Atlanta Braves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Networks position performs unexpectedly, Atlanta Braves 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 Atlanta Braves will offset losses from the drop in Atlanta Braves' long position.| AMC Networks vs. Walt Disney | AMC Networks vs. Roku Inc | AMC Networks vs. Netflix | AMC Networks vs. AMC Entertainment Holdings |
| Atlanta Braves vs. ADTRAN Inc | Atlanta Braves vs. Belden Inc | Atlanta Braves vs. ADC Therapeutics SA | Atlanta Braves vs. Comtech Telecommunications Corp |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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