Correlation Between 00165CAP9 and US Global

Can any of the company-specific risk be diversified away by investing in both 00165CAP9 and US Global 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 00165CAP9 and US Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AMC ENTMT HLDGS and US Global Investors, you can compare the effects of market volatilities on 00165CAP9 and US Global 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 00165CAP9 with a short position of US Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00165CAP9 and US Global.

Diversification Opportunities for 00165CAP9 and US Global

0.07

Correlation Coefficient

00165CAP9  US Global

Significant diversification

The 3 months correlation between 00165CAP9 and GROW is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding AMC ENTMT HLDGS and US Global Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Global Investors and 00165CAP9 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 ENTMT HLDGS are associated (or correlated) with US Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Global Investors has no effect on the direction of 00165CAP9 i.e., 00165CAP9 and US Global go up and down completely randomly.

Pair Corralation between 00165CAP9 and US Global

Assuming the 90 days trading horizon AMC ENTMT HLDGS is expected to generate 3.77 times more return on investment than US Global. However, 00165CAP9 is 3.77 times more volatile than US Global Investors. It trades about 0.01 of its potential returns per unit of risk. US Global Investors is currently generating about -0.01 per unit of risk. If you would invest  7,775  in AMC ENTMT HLDGS on October 22, 2024 and sell it today you would lose (900.00) from holding AMC ENTMT HLDGS or give up 11.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	82.02%
Values	Daily Returns

AMC ENTMT HLDGS  vs.  US Global Investors

AMC ENTMT HLDGS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AMC ENTMT HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for AMC ENTMT HLDGS investors.

US Global Investors

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in US Global Investors are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, US Global is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with 00165CAP9 and US Global

The main advantage of trading using opposite 00165CAP9 and US Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00165CAP9 position performs unexpectedly, US Global 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 US Global will offset losses from the drop in US Global's long position.

The idea behind AMC ENTMT HLDGS and US Global Investors 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.