Correlation Between AMC Networks and News Corp
Can any of the company-specific risk be diversified away by investing in both AMC Networks and News Corp 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 News Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Networks and News Corp B, you can compare the effects of market volatilities on AMC Networks and News Corp 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 News Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Networks and News Corp.
Diversification Opportunities for AMC Networks and News Corp
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AMC and News is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding AMC Networks and News Corp B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News Corp B 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 News Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News Corp B has no effect on the direction of AMC Networks i.e., AMC Networks and News Corp go up and down completely randomly.
Pair Corralation between AMC Networks and News Corp
Given the investment horizon of 90 days AMC Networks is expected to under-perform the News Corp. In addition to that, AMC Networks is 3.56 times more volatile than News Corp B. It trades about -0.06 of its total potential returns per unit of risk. News Corp B is currently generating about 0.1 per unit of volatility. If you would invest 2,739 in News Corp B on August 24, 2024 and sell it today you would earn a total of 472.00 from holding News Corp B or generate 17.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Networks vs. News Corp B
Performance |
| Timeline |
| AMC Networks |
| News Corp B |
AMC Networks and News Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Networks and News Corp
The main advantage of trading using opposite AMC Networks and News Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Networks position performs unexpectedly, News Corp 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 News Corp will offset losses from the drop in News Corp'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 |
| News Corp vs. Fox Corp Class | News Corp vs. Liberty Media | News Corp vs. Marcus | News Corp vs. Madison Square Garden |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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