Correlation Between AMC Preferred and Marcus
Can any of the company-specific risk be diversified away by investing in both AMC Preferred and Marcus 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 Marcus 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 Marcus, you can compare the effects of market volatilities on AMC Preferred and Marcus 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 Marcus. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Preferred and Marcus.
Diversification Opportunities for AMC Preferred and Marcus
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMC and Marcus is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding AMC Preferred Units and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus 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 Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of AMC Preferred i.e., AMC Preferred and Marcus go up and down completely randomly.
Pair Corralation between AMC Preferred and Marcus
If you would invest 1,621 in Marcus on August 24, 2024 and sell it today you would earn a total of 561.00 from holding Marcus or generate 34.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.35% |
| Values | Daily Returns |
AMC Preferred Units vs. Marcus
Performance |
| Timeline |
| AMC Preferred Units |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Marcus |
AMC Preferred and Marcus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Preferred and Marcus
The main advantage of trading using opposite AMC Preferred and Marcus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Preferred position performs unexpectedly, Marcus 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 Marcus will offset losses from the drop in Marcus' long position.| AMC Preferred vs. Netflix | AMC Preferred vs. Walt Disney | AMC Preferred vs. Roku Inc | AMC Preferred vs. Paramount Global Class |
| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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