Correlation Between Marcus and AMC Preferred
Can any of the company-specific risk be diversified away by investing in both Marcus and AMC Preferred 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 Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus and AMC Preferred Units, you can compare the effects of market volatilities on Marcus and AMC Preferred 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 Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and AMC Preferred.
Diversification Opportunities for Marcus and AMC Preferred
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Marcus and AMC is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and AMC Preferred Units in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Preferred Units 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 Preferred. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Preferred Units has no effect on the direction of Marcus i.e., Marcus and AMC Preferred go up and down completely randomly.
Pair Corralation between Marcus and AMC Preferred
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 |
Marcus vs. AMC Preferred Units
Performance |
| Timeline |
| Marcus |
| AMC Preferred Units |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Marcus and AMC Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus and AMC Preferred
The main advantage of trading using opposite Marcus and AMC Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus position performs unexpectedly, AMC Preferred 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 Preferred will offset losses from the drop in AMC Preferred's long position.| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
| AMC Preferred vs. Netflix | AMC Preferred vs. Walt Disney | AMC Preferred vs. Roku Inc | AMC Preferred vs. Paramount Global 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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