Correlation Between News Corp and AMC Preferred
Can any of the company-specific risk be diversified away by investing in both News Corp 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 News Corp and AMC Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between News Corp B and AMC Preferred Units, you can compare the effects of market volatilities on News Corp 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 News Corp with a short position of AMC Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of News Corp and AMC Preferred.
Diversification Opportunities for News Corp and AMC Preferred
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between News and AMC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding News Corp B 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 News 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 News Corp B 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 News Corp i.e., News Corp and AMC Preferred go up and down completely randomly.
Pair Corralation between News Corp and AMC Preferred
If you would invest (100.00) in AMC Preferred Units on January 8, 2025 and sell it today you would earn a total of 100.00 from holding AMC Preferred Units or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
News Corp B vs. AMC Preferred Units
Performance |
| Timeline |
| News Corp B |
| AMC Preferred Units |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
News Corp and AMC Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with News Corp and AMC Preferred
The main advantage of trading using opposite News Corp and AMC Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if News Corp 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.| News Corp vs. Fox Corp Class | News Corp vs. Liberty Media | News Corp vs. Marcus | News Corp vs. Madison Square Garden |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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