Correlation Between AMC Entertainment and PIMCO

Specify exactly 2 symbols:
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 Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy4.55%
ValuesDaily Returns

AMC Entertainment Holdings  vs.  PIMCO

 Performance 
       Timeline  
AMC Entertainment 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
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 uncertain performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in April 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
PIMCO 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days PIMCO has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, PIMCO is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

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.
The idea behind AMC Entertainment Holdings and PIMCO 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.
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.

Other Complementary Tools

Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Money Managers
Screen money managers from public funds and ETFs managed around the world
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.