Correlation Between AMC Preferred and Live Nation
Can any of the company-specific risk be diversified away by investing in both AMC Preferred and Live Nation 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 Live Nation 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 Live Nation Entertainment, you can compare the effects of market volatilities on AMC Preferred and Live Nation 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 Live Nation. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Preferred and Live Nation.
Diversification Opportunities for AMC Preferred and Live Nation
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMC and Live is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding AMC Preferred Units and Live Nation Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Live Nation Entertainment 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 Live Nation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Live Nation Entertainment has no effect on the direction of AMC Preferred i.e., AMC Preferred and Live Nation go up and down completely randomly.
Pair Corralation between AMC Preferred and Live Nation
If you would invest 11,843 in Live Nation Entertainment on August 28, 2024 and sell it today you would earn a total of 2,211 from holding Live Nation Entertainment or generate 18.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
AMC Preferred Units vs. Live Nation Entertainment
Performance |
| Timeline |
| AMC Preferred Units |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Live Nation Entertainment |
AMC Preferred and Live Nation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Preferred and Live Nation
The main advantage of trading using opposite AMC Preferred and Live Nation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Preferred position performs unexpectedly, Live Nation 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 Live Nation will offset losses from the drop in Live Nation's long position.| AMC Preferred vs. Netflix | AMC Preferred vs. Walt Disney | AMC Preferred vs. Roku Inc | AMC Preferred vs. Paramount Global Class |
| Live Nation vs. Liberty Media | Live Nation vs. Atlanta Braves Holdings, | Live Nation vs. News Corp B | Live Nation vs. News Corp A |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |