Correlation Between AMC Networks and Marcus
Can any of the company-specific risk be diversified away by investing in both AMC Networks and Marcus 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 Marcus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Networks and Marcus, you can compare the effects of market volatilities on AMC Networks and Marcus 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 Marcus. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Networks and Marcus.
Diversification Opportunities for AMC Networks and Marcus
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AMC and Marcus is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding AMC Networks and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus 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 Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of AMC Networks i.e., AMC Networks and Marcus go up and down completely randomly.
Pair Corralation between AMC Networks and Marcus
Given the investment horizon of 90 days AMC Networks is expected to generate 1.94 times less return on investment than Marcus. In addition to that, AMC Networks is 1.24 times more volatile than Marcus. It trades about 0.18 of its total potential returns per unit of risk. Marcus is currently generating about 0.43 per unit of volatility. If you would invest 1,681 in Marcus on August 27, 2024 and sell it today you would earn a total of 522.00 from holding Marcus or generate 31.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Networks vs. Marcus
Performance |
| Timeline |
| AMC Networks |
| Marcus |
AMC Networks and Marcus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Networks and Marcus
The main advantage of trading using opposite AMC Networks and Marcus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Networks position performs unexpectedly, Marcus 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 Marcus will offset losses from the drop in Marcus' long position.| AMC Networks vs. Walt Disney | AMC Networks vs. Roku Inc | AMC Networks vs. Netflix | AMC Networks vs. AMC Entertainment Holdings |
| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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