Correlation Between AMC Entertainment and Clover Health

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

Diversification Opportunities for AMC Entertainment and Clover Health

0.35

Correlation Coefficient

AMC Entertainment  Clover Health

Weak diversification

The 3 months correlation between AMC and Clover is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Clover Health Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clover Health Investments 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 Clover Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clover Health Investments has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Clover Health go up and down completely randomly.

Pair Corralation between AMC Entertainment and Clover Health

Considering the 90-day investment horizon AMC Entertainment Holdings is expected to generate 0.6 times more return on investment than Clover Health. However, AMC Entertainment Holdings is 1.67 times less risky than Clover Health. It trades about -0.05 of its potential returns per unit of risk. Clover Health Investments is currently generating about -0.03 per unit of risk. If you would invest  329.00  in AMC Entertainment Holdings on July 14, 2025 and sell it today you would lose (34.00) from holding AMC Entertainment Holdings or give up 10.33% of portfolio value over 90 days.

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

AMC Entertainment Holdings  vs.  Clover Health Investments

AMC Entertainment

Risk-Adjusted Performance

Weakest

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.

Clover Health Investments

Risk-Adjusted Performance

Weakest

Over the last 90 days Clover Health Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with AMC Entertainment and Clover Health

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

The idea behind AMC Entertainment Holdings and Clover Health Investments 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.