Correlation Between AMC Preferred and World Wrestling
Can any of the company-specific risk be diversified away by investing in both AMC Preferred and World Wrestling 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 World Wrestling 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 World Wrestling Entertainment, you can compare the effects of market volatilities on AMC Preferred and World Wrestling 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 World Wrestling. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Preferred and World Wrestling.
Diversification Opportunities for AMC Preferred and World Wrestling
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AMC and World is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding AMC Preferred Units and World Wrestling Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on World Wrestling Ente 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 World Wrestling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of World Wrestling Ente has no effect on the direction of AMC Preferred i.e., AMC Preferred and World Wrestling go up and down completely randomly.
Pair Corralation between AMC Preferred and World Wrestling
If you would invest 10,642 in World Wrestling Entertainment on September 1, 2024 and sell it today you would earn a total of 0.00 from holding World Wrestling Entertainment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Preferred Units vs. World Wrestling Entertainment
Performance |
| Timeline |
| AMC Preferred Units |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| World Wrestling Ente |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AMC Preferred and World Wrestling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Preferred and World Wrestling
The main advantage of trading using opposite AMC Preferred and World Wrestling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Preferred position performs unexpectedly, World Wrestling 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 World Wrestling will offset losses from the drop in World Wrestling's long position.| AMC Preferred vs. Netflix | AMC Preferred vs. Walt Disney | AMC Preferred vs. Roku Inc | AMC Preferred vs. Paramount Global Class |
| World Wrestling vs. Liberty Media | World Wrestling vs. Live Nation Entertainment | World Wrestling vs. Madison Square Garden | World Wrestling vs. Warner Music Group |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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