Correlation Between Atlanta Braves and AMC Networks

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

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

Diversification Opportunities for Atlanta Braves and AMC Networks

0.72

Correlation Coefficient

Atlanta Braves  AMC Networks

Poor diversification

The 3 months correlation between Atlanta and AMC is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Atlanta Braves Holdings and AMC Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Networks and Atlanta Braves 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 Atlanta Braves Holdings are associated (or correlated) with AMC Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Networks has no effect on the direction of Atlanta Braves i.e., Atlanta Braves and AMC Networks go up and down completely randomly.

Pair Corralation between Atlanta Braves and AMC Networks

Assuming the 90 days horizon Atlanta Braves Holdings is expected to generate 0.37 times more return on investment than AMC Networks. However, Atlanta Braves Holdings is 2.71 times less risky than AMC Networks. It trades about -0.09 of its potential returns per unit of risk. AMC Networks is currently generating about -0.32 per unit of risk. If you would invest  3,802  in Atlanta Braves Holdings on January 20, 2024 and sell it today you would lose (87.00) from holding Atlanta Braves Holdings or give up 2.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Atlanta Braves Holdings  vs.  AMC Networks

Atlanta Braves Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atlanta Braves Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

AMC Networks

Risk-Adjusted Performance

0 of 100

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 fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Atlanta Braves and AMC Networks

The main advantage of trading using opposite Atlanta Braves and AMC Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanta Braves position performs unexpectedly, AMC Networks 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 Networks will offset losses from the drop in AMC Networks' long position.

The idea behind Atlanta Braves Holdings and AMC Networks 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.