Correlation Between Marcus and AMC Networks
Can any of the company-specific risk be diversified away by investing in both Marcus and AMC Networks 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 Marcus and AMC Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus and AMC Networks, you can compare the effects of market volatilities on Marcus and AMC Networks 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 Marcus with a short position of AMC Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and AMC Networks.
Diversification Opportunities for Marcus and AMC Networks
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Marcus and AMC is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and AMC Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Networks and Marcus 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 Marcus are associated (or correlated) with AMC Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Networks has no effect on the direction of Marcus i.e., Marcus and AMC Networks go up and down completely randomly.
Pair Corralation between Marcus and AMC Networks
Considering the 90-day investment horizon Marcus is expected to generate 0.45 times more return on investment than AMC Networks. However, Marcus is 2.2 times less risky than AMC Networks. It trades about 0.26 of its potential returns per unit of risk. AMC Networks is currently generating about -0.06 per unit of risk. If you would invest 1,089 in Marcus on August 24, 2024 and sell it today you would earn a total of 1,093 from holding Marcus or generate 100.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcus vs. AMC Networks
Performance |
| Timeline |
| Marcus |
| AMC Networks |
Marcus and AMC Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus and AMC Networks
The main advantage of trading using opposite Marcus and AMC Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus position performs unexpectedly, AMC Networks 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 Networks will offset losses from the drop in AMC Networks' long position.| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
| AMC Networks vs. Nexstar Broadcasting Group | AMC Networks vs. News Corp B | AMC Networks vs. Fox Corp Class | AMC Networks vs. Liberty Media |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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