Correlation Between Maxx Sports and AMC Preferred
Can any of the company-specific risk be diversified away by investing in both Maxx Sports and AMC Preferred 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 Maxx Sports and AMC Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maxx Sports TV and AMC Preferred Units, you can compare the effects of market volatilities on Maxx Sports and AMC Preferred 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 Maxx Sports with a short position of AMC Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxx Sports and AMC Preferred.
Diversification Opportunities for Maxx Sports and AMC Preferred
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Maxx and AMC is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Maxx Sports TV and AMC Preferred Units in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Preferred Units and Maxx Sports 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 Maxx Sports TV are associated (or correlated) with AMC Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Preferred Units has no effect on the direction of Maxx Sports i.e., Maxx Sports and AMC Preferred go up and down completely randomly.
Pair Corralation between Maxx Sports and AMC Preferred
If you would invest 180.00 in AMC Preferred Units on August 30, 2024 and sell it today you would earn a total of 0.00 from holding AMC Preferred Units or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Maxx Sports TV vs. AMC Preferred Units
Performance |
| Timeline |
| Maxx Sports TV |
| AMC Preferred Units |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Maxx Sports and AMC Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maxx Sports and AMC Preferred
The main advantage of trading using opposite Maxx Sports and AMC Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxx Sports position performs unexpectedly, AMC Preferred 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 AMC Preferred will offset losses from the drop in AMC Preferred's long position.| Maxx Sports vs. Warner Music Group | Maxx Sports vs. Live Nation Entertainment | Maxx Sports vs. Atlanta Braves Holdings, | Maxx Sports vs. Warner Bros Discovery |
| AMC Preferred vs. Netflix | AMC Preferred vs. Walt Disney | AMC Preferred vs. Roku Inc | AMC Preferred vs. Paramount Global 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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