Correlation Between AMC Networks and Chicken Soup
Can any of the company-specific risk be diversified away by investing in both AMC Networks and Chicken Soup 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 Chicken Soup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Networks and Chicken Soup For, you can compare the effects of market volatilities on AMC Networks and Chicken Soup 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 Chicken Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Networks and Chicken Soup.
Diversification Opportunities for AMC Networks and Chicken Soup
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMC and Chicken is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding AMC Networks and Chicken Soup For in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicken Soup For 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 Chicken Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicken Soup For has no effect on the direction of AMC Networks i.e., AMC Networks and Chicken Soup go up and down completely randomly.
Pair Corralation between AMC Networks and Chicken Soup
If you would invest 826.00 in AMC Networks on August 28, 2024 and sell it today you would earn a total of 104.00 from holding AMC Networks or generate 12.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
AMC Networks vs. Chicken Soup For
Performance |
| Timeline |
| AMC Networks |
| Chicken Soup For |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AMC Networks and Chicken Soup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Networks and Chicken Soup
The main advantage of trading using opposite AMC Networks and Chicken Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Networks position performs unexpectedly, Chicken Soup 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 Chicken Soup will offset losses from the drop in Chicken Soup'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 |
| Chicken Soup vs. AMC Networks | Chicken Soup vs. Lions Gate Entertainment | Chicken Soup vs. Reservoir Media | Chicken Soup vs. Marcus |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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