Correlation Between AMC Preferred and LiveOne

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

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

Diversification Opportunities for AMC Preferred and LiveOne

-0.16

Correlation Coefficient

AMC Preferred  LiveOne

Good diversification

The 3 months correlation between AMC and LiveOne is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding AMC Preferred Units and LiveOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveOne and AMC Preferred 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 Preferred Units are associated (or correlated) with LiveOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiveOne has no effect on the direction of AMC Preferred i.e., AMC Preferred and LiveOne go up and down completely randomly.

Pair Corralation between AMC Preferred and LiveOne

If you would invest  180.00  in AMC Preferred Units on September 13, 2024 and sell it today you would earn a total of  0.00  from holding AMC Preferred Units or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

AMC Preferred Units  vs.  LiveOne

AMC Preferred Units

Risk-Adjusted Performance

0 of 100

Very Weak

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

LiveOne

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LiveOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, LiveOne is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with AMC Preferred and LiveOne

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

The idea behind AMC Preferred Units and LiveOne 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.