Correlation Between Eros STX and AMC Entertainment
Can any of the company-specific risk be diversified away by investing in both Eros STX and AMC Entertainment 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 Eros STX and AMC Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eros STX Global and AMC Entertainment Holdings, you can compare the effects of market volatilities on Eros STX and AMC Entertainment 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 Eros STX with a short position of AMC Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eros STX and AMC Entertainment.
Diversification Opportunities for Eros STX and AMC Entertainment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eros and AMC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eros STX Global and AMC Entertainment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Entertainment and Eros STX 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 Eros STX Global are associated (or correlated) with AMC Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Entertainment has no effect on the direction of Eros STX i.e., Eros STX and AMC Entertainment go up and down completely randomly.
Pair Corralation between Eros STX and AMC Entertainment
If you would invest (100.00) in Eros STX Global on January 17, 2024 and sell it today you would earn a total of 100.00 from holding Eros STX Global 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 |
Eros STX Global vs. AMC Entertainment Holdings
Performance |
| Timeline |
| Eros STX Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AMC Entertainment |
Eros STX and AMC Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eros STX and AMC Entertainment
The main advantage of trading using opposite Eros STX and AMC Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eros STX position performs unexpectedly, AMC Entertainment 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 Entertainment will offset losses from the drop in AMC Entertainment's long position.| Eros STX vs. BCE Inc | Eros STX vs. Barings BDC | Eros STX vs. Juniata Valley Financial | Eros STX vs. Encore Capital Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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