Correlation Between Madison Square and Endeavor Group
Can any of the company-specific risk be diversified away by investing in both Madison Square and Endeavor Group 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 Madison Square and Endeavor Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Madison Square Garden and Endeavor Group Holdings, you can compare the effects of market volatilities on Madison Square and Endeavor Group 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 Madison Square with a short position of Endeavor Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Madison Square and Endeavor Group.
Diversification Opportunities for Madison Square and Endeavor Group
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Madison and Endeavor is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Madison Square Garden and Endeavor Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endeavor Group Holdings and Madison Square 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 Madison Square Garden are associated (or correlated) with Endeavor Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endeavor Group Holdings has no effect on the direction of Madison Square i.e., Madison Square and Endeavor Group go up and down completely randomly.
Pair Corralation between Madison Square and Endeavor Group
Given the investment horizon of 90 days Madison Square Garden is expected to generate 2.5 times more return on investment than Endeavor Group. However, Madison Square is 2.5 times more volatile than Endeavor Group Holdings. It trades about 0.24 of its potential returns per unit of risk. Endeavor Group Holdings is currently generating about -0.03 per unit of risk. If you would invest 3,306 in Madison Square Garden on October 23, 2024 and sell it today you would earn a total of 290.00 from holding Madison Square Garden or generate 8.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Madison Square Garden vs. Endeavor Group Holdings
Performance |
| Timeline |
| Madison Square Garden |
| Endeavor Group Holdings |
Madison Square and Endeavor Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Madison Square and Endeavor Group
The main advantage of trading using opposite Madison Square and Endeavor Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Madison Square position performs unexpectedly, Endeavor Group 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 Endeavor Group will offset losses from the drop in Endeavor Group's long position.| Madison Square vs. Madison Square Garden | Madison Square vs. Graham Holdings Co | Madison Square vs. Atlanta Braves Holdings, | Madison Square vs. Live Nation Entertainment |
| Endeavor Group vs. Live Nation Entertainment | Endeavor Group vs. Manchester United | Endeavor Group vs. Warner Music Group | Endeavor Group vs. Liberty Media |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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