Correlation Between AMC Entertainment and Dover Downs
Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and Dover Downs 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 AMC Entertainment and Dover Downs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Entertainment Holdings and Dover Downs Gaming, you can compare the effects of market volatilities on AMC Entertainment and Dover Downs 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 AMC Entertainment with a short position of Dover Downs. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and Dover Downs.
Diversification Opportunities for AMC Entertainment and Dover Downs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMC and Dover is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Dover Downs Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dover Downs Gaming and AMC Entertainment 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 AMC Entertainment Holdings are associated (or correlated) with Dover Downs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dover Downs Gaming has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Dover Downs go up and down completely randomly.
Pair Corralation between AMC Entertainment and Dover Downs
If you would invest (100.00) in Dover Downs Gaming on January 25, 2024 and sell it today you would earn a total of 100.00 from holding Dover Downs Gaming 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 |
AMC Entertainment Holdings vs. Dover Downs Gaming
Performance |
| Timeline |
| AMC Entertainment |
| Dover Downs Gaming |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AMC Entertainment and Dover Downs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Entertainment and Dover Downs
The main advantage of trading using opposite AMC Entertainment and Dover Downs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Entertainment position performs unexpectedly, Dover Downs 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 Dover Downs will offset losses from the drop in Dover Downs' long position.The idea behind AMC Entertainment Holdings and Dover Downs Gaming pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Dover Downs vs. Nomura Holdings ADR | Dover Downs vs. Vishay Intertechnology | Dover Downs vs. Nasdaq Inc | Dover Downs vs. Pyrophyte Acquisition Corp |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |