Correlation Between AMC Entertainment and Metalpha Technology

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

Diversification Opportunities for AMC Entertainment and Metalpha Technology

0.45

Correlation Coefficient

AMC Entertainment  Metalpha Technology

Very weak diversification

The 3 months correlation between AMC and Metalpha is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding AMC Entertainment Holdings and Metalpha Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metalpha Technology 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 Metalpha Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metalpha Technology has no effect on the direction of AMC Entertainment i.e., AMC Entertainment and Metalpha Technology go up and down completely randomly.

Pair Corralation between AMC Entertainment and Metalpha Technology

Considering the 90-day investment horizon AMC Entertainment is expected to generate 3.28 times less return on investment than Metalpha Technology. But when comparing it to its historical volatility, AMC Entertainment Holdings is 1.48 times less risky than Metalpha Technology. It trades about 0.05 of its potential returns per unit of risk. Metalpha Technology Holding is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  220.00  in Metalpha Technology Holding on May 11, 2025 and sell it today you would earn a total of  77.00  from holding Metalpha Technology Holding or generate 35.0% return on investment over 90 days.

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

AMC Entertainment Holdings  vs.  Metalpha Technology Holding

AMC Entertainment

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in AMC Entertainment Holdings are ranked lower than 3 (%) 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.

Metalpha Technology

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Metalpha Technology Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Metalpha Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with AMC Entertainment and Metalpha Technology

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

The idea behind AMC Entertainment Holdings and Metalpha Technology Holding 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.