Correlation Between Tech Central and AMC Entertainment

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

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

Diversification Opportunities for Tech Central and AMC Entertainment

0.0

Correlation Coefficient

Tech Central  AMC Entertainment

Pay attention - limited upside

The 3 months correlation between Tech and AMC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tech Central and AMC Entertainment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Entertainment and Tech Central 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 Tech Central are associated (or correlated) with AMC Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Entertainment has no effect on the direction of Tech Central i.e., Tech Central and AMC Entertainment go up and down completely randomly.

Pair Corralation between Tech Central and AMC Entertainment

If you would invest  274.00  in AMC Entertainment Holdings on May 14, 2025 and sell it today you would earn a total of  29.00  from holding AMC Entertainment Holdings or generate 10.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tech Central  vs.  AMC Entertainment Holdings

Tech Central

Risk-Adjusted Performance

Weakest

Over the last 90 days Tech Central has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Tech Central is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

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 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.

Pair Trading with Tech Central and AMC Entertainment

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

The idea behind Tech Central and AMC Entertainment Holdings 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.

Check out your portfolio center.

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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.