Correlation Between Blackrock Msci and AMC Entertainment

Can any of the company-specific risk be diversified away by investing in both Blackrock Msci 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 Blackrock Msci and AMC Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Blackrock Msci Asia and AMC Entertainment Holdings, you can compare the effects of market volatilities on Blackrock Msci 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 Blackrock Msci with a short position of AMC Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Msci and AMC Entertainment.

Diversification Opportunities for Blackrock Msci and AMC Entertainment

0.0

Correlation Coefficient

Blackrock Msci  AMC Entertainment

Pay attention - limited upside

The 3 months correlation between Blackrock and AMC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Msci Asia and AMC Entertainment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Entertainment and Blackrock Msci 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 Blackrock Msci Asia 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 Blackrock Msci i.e., Blackrock Msci and AMC Entertainment go up and down completely randomly.

Pair Corralation between Blackrock Msci and AMC Entertainment

If you would invest  314.00  in AMC Entertainment Holdings on January 29, 2024 and sell it today you would earn a total of  27.00  from holding AMC Entertainment Holdings or generate 8.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Blackrock Msci Asia  vs.  AMC Entertainment Holdings

Blackrock Msci Asia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blackrock Msci Asia has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking signals, Blackrock Msci is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

AMC Entertainment

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMC Entertainment Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in May 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Blackrock Msci and AMC Entertainment

The main advantage of trading using opposite Blackrock Msci and AMC Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Msci 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.

The idea behind Blackrock Msci Asia and AMC Entertainment Holdings 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.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.