Correlation Between Hall Of and AMC Entertainment

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

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

Diversification Opportunities for Hall Of and AMC Entertainment

0.42

Correlation Coefficient

Hall Of  AMC Entertainment

Very weak diversification

The 3 months correlation between Hall and AMC is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hall of Fame and AMC Entertainment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Entertainment and Hall Of 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 Hall of Fame are associated (or correlated) with AMC Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Entertainment has no effect on the direction of Hall Of i.e., Hall Of and AMC Entertainment go up and down completely randomly.

Pair Corralation between Hall Of and AMC Entertainment

Given the investment horizon of 90 days Hall of Fame is expected to generate 2.46 times more return on investment than AMC Entertainment. However, Hall Of is 2.46 times more volatile than AMC Entertainment Holdings. It trades about 0.0 of its potential returns per unit of risk. AMC Entertainment Holdings is currently generating about -0.15 per unit of risk. If you would invest  97.00  in Hall of Fame on December 26, 2024 and sell it today you would lose (13.00) from holding Hall of Fame or give up 13.4% of portfolio value over 90 days.

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

Hall of Fame  vs.  AMC Entertainment Holdings

Hall of Fame

Risk-Adjusted Performance

Very Weak

Over the last 90 days Hall of Fame has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Hall Of is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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.

Pair Trading with Hall Of and AMC Entertainment

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

The idea behind Hall of Fame and AMC Entertainment Holdings 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.