Correlation Between AMC Entertainment and Tech Central

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

Diversification Opportunities for AMC Entertainment and Tech Central

0.0

Correlation Coefficient

AMC Entertainment  Tech Central

Pay attention - limited upside

The 3 months correlation between AMC and Tech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Tech Central in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tech Central 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 Tech Central. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tech Central has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Tech Central go up and down completely randomly.

Pair Corralation between AMC Entertainment and Tech Central

If you would invest  0.02  in Tech Central on December 26, 2024 and sell it today you would earn a total of  0.00  from holding Tech Central or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AMC Entertainment Holdings  vs.  Tech Central

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.

Tech Central

Risk-Adjusted Performance

Very Weak

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

Pair Trading with AMC Entertainment and Tech Central

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

The idea behind AMC Entertainment Holdings and Tech Central 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.