Correlation Between Cinedigm Corp and AMC Entertainment
Can any of the company-specific risk be diversified away by investing in both Cinedigm Corp and AMC Entertainment 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 Cinedigm Corp and AMC Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cinedigm Corp and AMC Entertainment Holdings, you can compare the effects of market volatilities on Cinedigm Corp and AMC Entertainment 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 Cinedigm Corp with a short position of AMC Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinedigm Corp and AMC Entertainment.
Diversification Opportunities for Cinedigm Corp and AMC Entertainment
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cinedigm and AMC is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Cinedigm Corp and AMC Entertainment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Entertainment and Cinedigm Corp 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 Cinedigm Corp are associated (or correlated) with AMC Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Entertainment has no effect on the direction of Cinedigm Corp i.e., Cinedigm Corp and AMC Entertainment go up and down completely randomly.
Pair Corralation between Cinedigm Corp and AMC Entertainment
If you would invest 456.00 in AMC Entertainment Holdings on August 31, 2024 and sell it today you would earn a total of 41.00 from holding AMC Entertainment Holdings or generate 8.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Cinedigm Corp vs. AMC Entertainment Holdings
Performance |
| Timeline |
| Cinedigm Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AMC Entertainment |
Cinedigm Corp and AMC Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinedigm Corp and AMC Entertainment
The main advantage of trading using opposite Cinedigm Corp and AMC Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinedigm Corp position performs unexpectedly, AMC Entertainment 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 Entertainment will offset losses from the drop in AMC Entertainment's long position.| Cinedigm Corp vs. Cineverse Corp | Cinedigm Corp vs. AMC Entertainment Holdings | Cinedigm Corp vs. Manchester United | Cinedigm Corp vs. iQIYI Inc |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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