Correlation Between Entravision Communications and AMC Networks
Can any of the company-specific risk be diversified away by investing in both Entravision Communications and AMC Networks 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 Entravision Communications and AMC Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Entravision Communications and AMC Networks, you can compare the effects of market volatilities on Entravision Communications and AMC Networks 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 Entravision Communications with a short position of AMC Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Entravision Communications and AMC Networks.
Diversification Opportunities for Entravision Communications and AMC Networks
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Entravision and AMC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Entravision Communications and AMC Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Networks and Entravision Communications 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 Entravision Communications are associated (or correlated) with AMC Networks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMC Networks has no effect on the direction of Entravision Communications i.e., Entravision Communications and AMC Networks go up and down completely randomly.
Pair Corralation between Entravision Communications and AMC Networks
Considering the 90-day investment horizon Entravision Communications is expected to generate 1.15 times more return on investment than AMC Networks. However, Entravision Communications is 1.15 times more volatile than AMC Networks. It trades about 0.13 of its potential returns per unit of risk. AMC Networks is currently generating about 0.04 per unit of risk. If you would invest 202.00 in Entravision Communications on May 29, 2025 and sell it today you would earn a total of 56.00 from holding Entravision Communications or generate 27.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Entravision Communications vs. AMC Networks
Performance |
| Timeline |
| Entravision Communications |
| AMC Networks |
Entravision Communications and AMC Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Entravision Communications and AMC Networks
The main advantage of trading using opposite Entravision Communications and AMC Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Entravision Communications position performs unexpectedly, AMC Networks 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 Networks will offset losses from the drop in AMC Networks' long position.| Entravision Communications vs. Emerald Expositions Events | Entravision Communications vs. Marchex | Entravision Communications vs. Clear Channel Outdoor | Entravision Communications vs. Townsquare Media |
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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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.
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