Correlation Between AMC Entertainment and MultiMetaVerse Holdings

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

Diversification Opportunities for AMC Entertainment and MultiMetaVerse Holdings

-0.32

Correlation Coefficient

AMC Entertainment  MultiMetaVerse Holdings

Very good diversification

The 3 months correlation between AMC and MultiMetaVerse is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and MultiMetaVerse Holdings Limite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MultiMetaVerse Holdings 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 MultiMetaVerse Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MultiMetaVerse Holdings has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and MultiMetaVerse Holdings go up and down completely randomly.

Pair Corralation between AMC Entertainment and MultiMetaVerse Holdings

Considering the 90-day investment horizon AMC Entertainment Holdings is expected to under-perform the MultiMetaVerse Holdings. But the stock apears to be less risky and, when comparing its historical volatility, AMC Entertainment Holdings is 6.74 times less risky than MultiMetaVerse Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The MultiMetaVerse Holdings Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  4.90  in MultiMetaVerse Holdings Limited on September 11, 2024 and sell it today you would lose (2.07) from holding MultiMetaVerse Holdings Limited or give up 42.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	62.5%
Values	Daily Returns

AMC Entertainment Holdings  vs.  MultiMetaVerse Holdings Limite

AMC Entertainment

Risk-Adjusted Performance

0 of 100

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 latest conflicting performance, the Stock's primary indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

MultiMetaVerse Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MultiMetaVerse Holdings Limited has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, MultiMetaVerse Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with AMC Entertainment and MultiMetaVerse Holdings

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

The idea behind AMC Entertainment Holdings and MultiMetaVerse Holdings Limited 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.