Correlation Between Cinedigm Corp and AMC Networks

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

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

Diversification Opportunities for Cinedigm Corp and AMC Networks

-0.68

Correlation Coefficient

Cinedigm Corp  AMC Networks

Excellent diversification

The 3 months correlation between Cinedigm and AMC is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cinedigm Corp and AMC Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Networks and Cinedigm Corp 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 Cinedigm Corp are associated (or correlated) with AMC Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Networks has no effect on the direction of Cinedigm Corp i.e., Cinedigm Corp and AMC Networks go up and down completely randomly.

Pair Corralation between Cinedigm Corp and AMC Networks

If you would invest  29.00  in Cinedigm Corp on September 22, 2024 and sell it today you would earn a total of  0.00  from holding Cinedigm Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	4.76%
Values	Daily Returns

Cinedigm Corp  vs.  AMC Networks

Cinedigm Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

AMC Networks

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AMC Networks are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, AMC Networks showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cinedigm Corp and AMC Networks

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

The idea behind Cinedigm Corp and AMC Networks 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..