Correlation Between AMC Networks and Mediaco Holding
Can any of the company-specific risk be diversified away by investing in both AMC Networks and Mediaco Holding 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 Mediaco Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Networks and Mediaco Holding, you can compare the effects of market volatilities on AMC Networks and Mediaco Holding 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 Mediaco Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Networks and Mediaco Holding.
Diversification Opportunities for AMC Networks and Mediaco Holding
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMC and Mediaco is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AMC Networks and Mediaco Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediaco Holding 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 Mediaco Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediaco Holding has no effect on the direction of AMC Networks i.e., AMC Networks and Mediaco Holding go up and down completely randomly.
Pair Corralation between AMC Networks and Mediaco Holding
Given the investment horizon of 90 days AMC Networks is expected to generate 0.65 times more return on investment than Mediaco Holding. However, AMC Networks is 1.55 times less risky than Mediaco Holding. It trades about -0.06 of its potential returns per unit of risk. Mediaco Holding is currently generating about -0.05 per unit of risk. If you would invest 935.00 in AMC Networks on October 23, 2024 and sell it today you would lose (36.00) from holding AMC Networks or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Networks vs. Mediaco Holding
Performance |
| Timeline |
| AMC Networks |
| Mediaco Holding |
AMC Networks and Mediaco Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Networks and Mediaco Holding
The main advantage of trading using opposite AMC Networks and Mediaco Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Networks position performs unexpectedly, Mediaco Holding 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 Mediaco Holding will offset losses from the drop in Mediaco Holding'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 |
| Mediaco Holding vs. Saga Communications | Mediaco Holding vs. ProSiebenSat1 Media AG | Mediaco Holding vs. Cumulus Media Class | Mediaco Holding vs. Beasley Broadcast Group |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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