Correlation Between Madison Square and Atlanta Braves
Can any of the company-specific risk be diversified away by investing in both Madison Square and Atlanta Braves 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 Atlanta Braves 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 Atlanta Braves Holdings,, you can compare the effects of market volatilities on Madison Square and Atlanta Braves 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 Atlanta Braves. Check out your portfolio center. Please also check ongoing floating volatility patterns of Madison Square and Atlanta Braves.
Diversification Opportunities for Madison Square and Atlanta Braves
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Madison and Atlanta is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Madison Square Garden and Atlanta Braves Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanta Braves 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 Atlanta Braves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanta Braves Holdings, has no effect on the direction of Madison Square i.e., Madison Square and Atlanta Braves go up and down completely randomly.
Pair Corralation between Madison Square and Atlanta Braves
Given the investment horizon of 90 days Madison Square Garden is expected to generate 0.89 times more return on investment than Atlanta Braves. However, Madison Square Garden is 1.12 times less risky than Atlanta Braves. It trades about 0.16 of its potential returns per unit of risk. Atlanta Braves Holdings, is currently generating about 0.01 per unit of risk. If you would invest 18,382 in Madison Square Garden on August 24, 2024 and sell it today you would earn a total of 4,467 from holding Madison Square Garden or generate 24.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Madison Square Garden vs. Atlanta Braves Holdings,
Performance |
| Timeline |
| Madison Square Garden |
| Atlanta Braves Holdings, |
Madison Square and Atlanta Braves Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Madison Square and Atlanta Braves
The main advantage of trading using opposite Madison Square and Atlanta Braves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Madison Square position performs unexpectedly, Atlanta Braves 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 Atlanta Braves will offset losses from the drop in Atlanta Braves' long position.| Madison Square vs. Atlanta Braves Holdings, | Madison Square vs. Liberty Media | Madison Square vs. Liberty Media | Madison Square vs. Atlanta Braves Holdings, |
| Atlanta Braves vs. Madison Square Garden | Atlanta Braves vs. Liberty Media | Atlanta Braves vs. Liberty Media | Atlanta Braves vs. Maxx Sports TV |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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