Correlation Between AMC Entertainment and Cumulus Media

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

Diversification Opportunities for AMC Entertainment and Cumulus Media

-0.64

Correlation Coefficient

AMC Entertainment  Cumulus Media

Excellent diversification

The 3 months correlation between AMC and Cumulus is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class 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 Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Cumulus Media go up and down completely randomly.

Pair Corralation between AMC Entertainment and Cumulus Media

Considering the 90-day investment horizon AMC Entertainment Holdings is expected to generate 0.39 times more return on investment than Cumulus Media. However, AMC Entertainment Holdings is 2.55 times less risky than Cumulus Media. It trades about 0.11 of its potential returns per unit of risk. Cumulus Media Class is currently generating about -0.32 per unit of risk. If you would invest  269.00  in AMC Entertainment Holdings on April 21, 2025 and sell it today you would earn a total of  85.00  from holding AMC Entertainment Holdings or generate 31.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	17.46%
Values	Daily Returns

AMC Entertainment Holdings  vs.  Cumulus Media Class

AMC Entertainment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AMC Entertainment Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting primary indicators, AMC Entertainment exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cumulus Media Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cumulus Media Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with AMC Entertainment and Cumulus Media

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

The idea behind AMC Entertainment Holdings and Cumulus Media Class 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.