Correlation Between Townsquare Media and AMC Networks
Can any of the company-specific risk be diversified away by investing in both Townsquare Media 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 Townsquare Media and AMC Networks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Townsquare Media and AMC Networks, you can compare the effects of market volatilities on Townsquare Media 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 Townsquare Media with a short position of AMC Networks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Townsquare Media and AMC Networks.
Diversification Opportunities for Townsquare Media and AMC Networks
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Townsquare and AMC is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Townsquare Media and AMC Networks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMC Networks and Townsquare Media 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 Townsquare Media 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 Townsquare Media i.e., Townsquare Media and AMC Networks go up and down completely randomly.
Pair Corralation between Townsquare Media and AMC Networks
Considering the 90-day investment horizon Townsquare Media is expected to generate 1.55 times less return on investment than AMC Networks. But when comparing it to its historical volatility, Townsquare Media is 1.11 times less risky than AMC Networks. It trades about 0.04 of its potential returns per unit of risk. AMC Networks is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 647.00 in AMC Networks on June 2, 2025 and sell it today you would earn a total of 59.00 from holding AMC Networks or generate 9.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Townsquare Media vs. AMC Networks
Performance |
| Timeline |
| Townsquare Media |
| AMC Networks |
Townsquare Media and AMC Networks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Townsquare Media and AMC Networks
The main advantage of trading using opposite Townsquare Media and AMC Networks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Townsquare Media 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.| Townsquare Media vs. Travelzoo | Townsquare Media vs. Emerald Expositions Events | Townsquare Media vs. Ziff Davis | Townsquare Media vs. Direct Digital Holdings |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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