Correlation Between VS Media and AMC Networks
Can any of the company-specific risk be diversified away by investing in both VS Media 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 VS Media and AMC Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VS Media Holdings and AMC Networks, you can compare the effects of market volatilities on VS Media 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 VS Media with a short position of AMC Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of VS Media and AMC Networks.
Diversification Opportunities for VS Media and AMC Networks
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VSME and AMC is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding VS Media Holdings and AMC Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Networks and VS Media 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 VS Media Holdings 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 VS Media i.e., VS Media and AMC Networks go up and down completely randomly.
Pair Corralation between VS Media and AMC Networks
Given the investment horizon of 90 days VS Media Holdings is expected to under-perform the AMC Networks. In addition to that, VS Media is 2.16 times more volatile than AMC Networks. It trades about -0.13 of its total potential returns per unit of risk. AMC Networks is currently generating about 0.16 per unit of volatility. If you would invest 826.00 in AMC Networks on August 28, 2024 and sell it today you would earn a total of 104.00 from holding AMC Networks or generate 12.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
VS Media Holdings vs. AMC Networks
Performance |
| Timeline |
| VS Media Holdings |
| AMC Networks |
VS Media and AMC Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VS Media and AMC Networks
The main advantage of trading using opposite VS Media and AMC Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VS Media 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.| VS Media vs. Cedar Realty Trust | VS Media vs. ATRenew Inc DRC | VS Media vs. SunOpta | VS Media vs. FitLife Brands, Common |
| AMC Networks vs. Walt Disney | AMC Networks vs. Roku Inc | AMC Networks vs. Netflix | AMC Networks vs. AMC Entertainment Holdings |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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