Correlation Between AMC Preferred and Maxx Sports
Can any of the company-specific risk be diversified away by investing in both AMC Preferred and Maxx Sports 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 Preferred and Maxx Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Preferred Units and Maxx Sports TV, you can compare the effects of market volatilities on AMC Preferred and Maxx Sports 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 Preferred with a short position of Maxx Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Preferred and Maxx Sports.
Diversification Opportunities for AMC Preferred and Maxx Sports
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between AMC and Maxx is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding AMC Preferred Units and Maxx Sports TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maxx Sports TV and AMC Preferred 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 Preferred Units are associated (or correlated) with Maxx Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maxx Sports TV has no effect on the direction of AMC Preferred i.e., AMC Preferred and Maxx Sports go up and down completely randomly.
Pair Corralation between AMC Preferred and Maxx Sports
If you would invest 20.00 in Maxx Sports TV on August 26, 2024 and sell it today you would lose (17.00) from holding Maxx Sports TV or give up 85.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
AMC Preferred Units vs. Maxx Sports TV
Performance |
| Timeline |
| AMC Preferred Units |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Maxx Sports TV |
AMC Preferred and Maxx Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Preferred and Maxx Sports
The main advantage of trading using opposite AMC Preferred and Maxx Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Preferred position performs unexpectedly, Maxx Sports 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 Maxx Sports will offset losses from the drop in Maxx Sports' long position.| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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