Correlation Between Marcus and Sphere Entertainment
Can any of the company-specific risk be diversified away by investing in both Marcus and Sphere 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 Marcus and Sphere Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marcus and Sphere Entertainment Co, you can compare the effects of market volatilities on Marcus and Sphere 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 Marcus with a short position of Sphere Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marcus and Sphere Entertainment.
Diversification Opportunities for Marcus and Sphere Entertainment
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marcus and Sphere is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Marcus and Sphere Entertainment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sphere Entertainment and Marcus 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 Marcus are associated (or correlated) with Sphere Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sphere Entertainment has no effect on the direction of Marcus i.e., Marcus and Sphere Entertainment go up and down completely randomly.
Pair Corralation between Marcus and Sphere Entertainment
Considering the 90-day investment horizon Marcus is expected to generate 1.35 times more return on investment than Sphere Entertainment. However, Marcus is 1.35 times more volatile than Sphere Entertainment Co. It trades about 0.45 of its potential returns per unit of risk. Sphere Entertainment Co is currently generating about -0.14 per unit of risk. If you would invest 1,621 in Marcus on August 24, 2024 and sell it today you would earn a total of 561.00 from holding Marcus or generate 34.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marcus vs. Sphere Entertainment Co
Performance |
| Timeline |
| Marcus |
| Sphere Entertainment |
Marcus and Sphere Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marcus and Sphere Entertainment
The main advantage of trading using opposite Marcus and Sphere Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marcus position performs unexpectedly, Sphere 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 Sphere Entertainment will offset losses from the drop in Sphere Entertainment's long position.| Marcus vs. News Corp A | Marcus vs. Liberty Media | Marcus vs. Warner Music Group | Marcus vs. Fox Corp Class |
| Sphere Entertainment vs. Nexstar Broadcasting Group | Sphere Entertainment vs. Yuexiu Transport Infrastructure | Sphere Entertainment vs. Under Armour C | Sphere Entertainment vs. Citi Trends |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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