Correlation Between AMC Entertainment and Cineverse Corp

Can any of the company-specific risk be diversified away by investing in both AMC Entertainment and Cineverse Corp 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 Cineverse Corp 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 Cineverse Corp, you can compare the effects of market volatilities on AMC Entertainment and Cineverse Corp 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 Cineverse Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Entertainment and Cineverse Corp.

Diversification Opportunities for AMC Entertainment and Cineverse Corp

0.24

Correlation Coefficient

AMC Entertainment  Cineverse Corp

Modest diversification

The 3 months correlation between AMC and Cineverse is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Cineverse Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cineverse Corp 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 Cineverse Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cineverse Corp has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Cineverse Corp go up and down completely randomly.

Pair Corralation between AMC Entertainment and Cineverse Corp

Considering the 90-day investment horizon AMC Entertainment Holdings is expected to under-perform the Cineverse Corp. But the stock apears to be less risky and, when comparing its historical volatility, AMC Entertainment Holdings is 1.56 times less risky than Cineverse Corp. The stock trades about -0.17 of its potential returns per unit of risk. The Cineverse Corp is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  381.00  in Cineverse Corp on December 29, 2024 and sell it today you would lose (56.00) from holding Cineverse Corp or give up 14.7% of portfolio value over 90 days.

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

AMC Entertainment Holdings  vs.  Cineverse Corp

AMC Entertainment

Risk-Adjusted Performance

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 conflicting performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Cineverse Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cineverse Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with AMC Entertainment and Cineverse Corp

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

The idea behind AMC Entertainment Holdings and Cineverse Corp 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.