Correlation Between AMC Networks and ATY Old

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Can any of the company-specific risk be diversified away by investing in both AMC Networks and ATY Old 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 Networks and ATY Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Networks and ATY Old, you can compare the effects of market volatilities on AMC Networks and ATY Old 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 Networks with a short position of ATY Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Networks and ATY Old.

Diversification Opportunities for AMC Networks and ATY Old

0.8
  Correlation Coefficient

Very poor diversification

The 3 months correlation between AMC and ATY is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding AMC Networks and ATY Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATY Old and AMC Networks 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 Networks are associated (or correlated) with ATY Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATY Old has no effect on the direction of AMC Networks i.e., AMC Networks and ATY Old go up and down completely randomly.

Pair Corralation between AMC Networks and ATY Old

If you would invest  160.00  in ATY Old on December 30, 2023 and sell it today you would earn a total of  0.00  from holding ATY Old or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy4.55%
ValuesDaily Returns

AMC Networks  vs.  ATY Old

 Performance 
       Timeline  
AMC Networks 

Risk-Adjusted Performance

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Low
 
High
Very Weak
Over the last 90 days AMC Networks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in April 2024. The current disturbance may also be a sign of long term up-swing for the company investors.
ATY Old 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days ATY Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, ATY Old is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

AMC Networks and ATY Old Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with AMC Networks and ATY Old

The main advantage of trading using opposite AMC Networks and ATY Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Networks position performs unexpectedly, ATY Old 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 ATY Old will offset losses from the drop in ATY Old's long position.
The idea behind AMC Networks and ATY Old 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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