Correlation Between NYSE Composite and Sportradar Group
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Sportradar 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 NYSE Composite and Sportradar Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Sportradar Group AG, you can compare the effects of market volatilities on NYSE Composite and Sportradar 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 NYSE Composite with a short position of Sportradar Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Sportradar Group.
Diversification Opportunities for NYSE Composite and Sportradar Group
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Sportradar is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Sportradar Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sportradar Group and NYSE Composite 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 NYSE Composite are associated (or correlated) with Sportradar Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sportradar Group has no effect on the direction of NYSE Composite i.e., NYSE Composite and Sportradar Group go up and down completely randomly.
Pair Corralation between NYSE Composite and Sportradar Group
Assuming the 90 days trading horizon NYSE Composite is expected to generate 8.05 times less return on investment than Sportradar Group. But when comparing it to its historical volatility, NYSE Composite is 5.94 times less risky than Sportradar Group. It trades about 0.26 of its potential returns per unit of risk. Sportradar Group AG is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 1,278 in Sportradar Group AG on August 30, 2024 and sell it today you would earn a total of 435.00 from holding Sportradar Group AG or generate 34.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Sportradar Group AG
Performance |
| Timeline |
NYSE Composite and Sportradar Group Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Sportradar Group AG
Pair trading matchups for Sportradar Group
Pair Trading with NYSE Composite and Sportradar Group
The main advantage of trading using opposite NYSE Composite and Sportradar Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Sportradar 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 Sportradar Group will offset losses from the drop in Sportradar Group's long position.| NYSE Composite vs. Delek Drilling | NYSE Composite vs. Helmerich and Payne | NYSE Composite vs. Waste Management | NYSE Composite vs. US Global Investors |
| Sportradar Group vs. Paycor HCM | Sportradar Group vs. Clearwater Analytics Holdings | Sportradar Group vs. Procore Technologies | Sportradar Group vs. Alkami Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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