Correlation Between AMC Entertainment and PLDT

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

Diversification Opportunities for AMC Entertainment and PLDT

-0.35

Correlation Coefficient

AMC Entertainment  PLDT

Very good diversification

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

Pair Corralation between AMC Entertainment and PLDT

Considering the 90-day investment horizon AMC Entertainment Holdings is expected to generate 4.19 times more return on investment than PLDT. However, AMC Entertainment is 4.19 times more volatile than PLDT Inc ADR. It trades about 0.06 of its potential returns per unit of risk. PLDT Inc ADR is currently generating about -0.02 per unit of risk. If you would invest  265.00  in AMC Entertainment Holdings on May 1, 2025 and sell it today you would earn a total of  31.00  from holding AMC Entertainment Holdings or generate 11.7% return on investment over 90 days.

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

AMC Entertainment Holdings  vs.  PLDT Inc ADR

AMC Entertainment

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AMC Entertainment Holdings are ranked lower than 4 (%) 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.

PLDT Inc ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days PLDT Inc ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, PLDT is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with AMC Entertainment and PLDT

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

The idea behind AMC Entertainment Holdings and PLDT Inc ADR 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.