Correlation Between Sycamore Entmt and AMC Preferred
Can any of the company-specific risk be diversified away by investing in both Sycamore Entmt 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 Sycamore Entmt and AMC Preferred into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sycamore Entmt Grp and AMC Preferred Units, you can compare the effects of market volatilities on Sycamore Entmt 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 Sycamore Entmt with a short position of AMC Preferred. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sycamore Entmt and AMC Preferred.
Diversification Opportunities for Sycamore Entmt and AMC Preferred
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sycamore and AMC is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Sycamore Entmt Grp 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 Sycamore Entmt 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 Sycamore Entmt Grp 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 Sycamore Entmt i.e., Sycamore Entmt and AMC Preferred go up and down completely randomly.
Pair Corralation between Sycamore Entmt and AMC Preferred
If you would invest 0.17 in Sycamore Entmt Grp on August 26, 2024 and sell it today you would earn a total of 0.04 from holding Sycamore Entmt Grp or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Sycamore Entmt Grp vs. AMC Preferred Units
Performance |
| Timeline |
| Sycamore Entmt Grp |
| AMC Preferred Units |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sycamore Entmt and AMC Preferred Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sycamore Entmt and AMC Preferred
The main advantage of trading using opposite Sycamore Entmt and AMC Preferred positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sycamore Entmt 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.| Sycamore Entmt vs. Aftermaster | Sycamore Entmt vs. Lingerie Fighting Championships | Sycamore Entmt vs. Major League Football | Sycamore Entmt vs. WRIT Media Group |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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