Correlation Between AMC Entertainment and PIMCO
Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and PIMCO 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 PIMCO 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 PIMCO, you can compare the effects of market volatilities on AMC Entertainment and PIMCO 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 PIMCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and PIMCO.
Diversification Opportunities for AMC Entertainment and PIMCO
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMC and PIMCO is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and PIMCO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PIMCO 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 PIMCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PIMCO has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and PIMCO go up and down completely randomly.
Pair Corralation between AMC Entertainment and PIMCO
If you would invest 9.36 in PIMCO on December 30, 2023 and sell it today you would earn a total of 0.00 from holding PIMCO or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 4.55% |
Values | Daily Returns |
AMC Entertainment Holdings vs. PIMCO
Performance |
Timeline |
AMC Entertainment |
PIMCO |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
AMC Entertainment and PIMCO Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AMC Entertainment and PIMCO
The main advantage of trading using opposite AMC Entertainment and PIMCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Entertainment position performs unexpectedly, PIMCO 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 PIMCO will offset losses from the drop in PIMCO's long position.AMC Entertainment vs. Madison Square Garden | AMC Entertainment vs. Anghami Warrants | AMC Entertainment vs. Alliance Entertainment Holding | AMC Entertainment vs. News Corp A |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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