Vexed by Wednesdays repeated halts in

GameStop Corp. shares, day traders were left grasping for clues on where the stocks chaotic journey would pick up after the restrictions were lifted.

They didnt have to look far.

AMC Entertainment Holdings Inc., another wildly popular meme stock among members of Reddits WallStreetBets forum, was a near-perfect predictor for how the market would react after each of the seven pauses.

The movie-theater chains shares plummeted as the first GameStop halt triggered at 12:22 p.m. in New York and continued to fall through the two stoppages that would follow. But at 12:40, just as the video-game retailers shares were to cease trading yet again, AMCs stock began to rally. It was after that fourth pause that GameStop too would change course.

Lily Francus, an independent quantitative researcher, wrote about the relationship on Twitter.

In general the stronger the meme effect on the stock the more highly correlated its associated basket is, Francus wrote on Wednesday. AMC acts as a price discovery mechanism for GME during halts.

In general the stronger the meme effect on the stock the more highly correlated its associated basket is. AMC acts as a price discovery mechanism for GME during halts. It’s not a perfect sieve, but it seems to give a good idea ahead of time what’s coming.

Lily Furu-ncus (@nope_its_lily) March 10, 2021

It makes sense that GameStop and AMC have moved in tandem. Theyre the two

most-mentioned names on StockTwits and garner incessant attention from day traders on Reddit. At the same time, theres been growing concern about a

disconnect between the pairs future prospects as Covid-19 lockdowns are lifted.

With assistance by Bailey Lipschultz, and Paul Jarvis

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