Correlation Between AMC Networks and Six Flags
Can any of the company-specific risk be diversified away by investing in both AMC Networks and Six Flags 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 Networks and Six Flags into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMC Networks and Six Flags Entertainment, you can compare the effects of market volatilities on AMC Networks and Six Flags 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 Networks with a short position of Six Flags. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMC Networks and Six Flags.
Diversification Opportunities for AMC Networks and Six Flags
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AMC and Six is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding AMC Networks and Six Flags Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Six Flags Entertainment and AMC Networks 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 Networks are associated (or correlated) with Six Flags. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Six Flags Entertainment has no effect on the direction of AMC Networks i.e., AMC Networks and Six Flags go up and down completely randomly.
Pair Corralation between AMC Networks and Six Flags
Given the investment horizon of 90 days AMC Networks is expected to generate 0.81 times more return on investment than Six Flags. However, AMC Networks is 1.24 times less risky than Six Flags. It trades about 0.06 of its potential returns per unit of risk. Six Flags Entertainment is currently generating about -0.11 per unit of risk. If you would invest 657.00 in AMC Networks on May 27, 2025 and sell it today you would earn a total of 53.00 from holding AMC Networks or generate 8.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMC Networks vs. Six Flags Entertainment
Performance |
| Timeline |
| AMC Networks |
| Six Flags Entertainment |
AMC Networks and Six Flags Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMC Networks and Six Flags
The main advantage of trading using opposite AMC Networks and Six Flags positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMC Networks position performs unexpectedly, Six Flags 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 Six Flags will offset losses from the drop in Six Flags' long position.| AMC Networks vs. National Beverage Corp | AMC Networks vs. Fox Corp Class | AMC Networks vs. Liberty Media | AMC Networks vs. Nexstar Broadcasting Group |
| Six Flags vs. Clarus Corp | Six Flags vs. Dine Brands Global | Six Flags vs. JAKKS Pacific | Six Flags vs. OneSpaWorld Holdings |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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