Correlation Between AMC Networks and Diego Pellicer

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

By analyzing existing cross correlation between AMC Networks and Diego Pellicer Worldwide, you can compare the effects of market volatilities on AMC Networks and Diego Pellicer 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 Diego Pellicer. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Networks and Diego Pellicer.

Diversification Opportunities for AMC Networks and Diego Pellicer

-0.67

Correlation Coefficient

AMC Networks  Diego Pellicer

Excellent diversification

The 3 months correlation between AMC and Diego is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding AMC Networks and Diego Pellicer Worldwide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Diego Pellicer Worldwide 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 Diego Pellicer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Diego Pellicer Worldwide has no effect on the direction of AMC Networks i.e., AMC Networks and Diego Pellicer go up and down completely randomly.

Pair Corralation between AMC Networks and Diego Pellicer

Given the investment horizon of 90 days AMC Networks is expected to under-perform the Diego Pellicer. But the stock apears to be less risky and, when comparing its historical volatility, AMC Networks is 40.39 times less risky than Diego Pellicer. The stock trades about 0.0 of its potential returns per unit of risk. The Diego Pellicer Worldwide is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  0.40  in Diego Pellicer Worldwide on September 24, 2024 and sell it today you would lose (0.39) from holding Diego Pellicer Worldwide or give up 97.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

AMC Networks  vs.  Diego Pellicer Worldwide

AMC Networks

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AMC Networks are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, AMC Networks showed solid returns over the last few months and may actually be approaching a breakup point.

Diego Pellicer Worldwide

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Diego Pellicer Worldwide are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Diego Pellicer showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AMC Networks and Diego Pellicer

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

The idea behind AMC Networks and Diego Pellicer Worldwide 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.