Correlation Between OneSpaWorld Holdings and Madison Square
Can any of the company-specific risk be diversified away by investing in both OneSpaWorld Holdings and Madison Square 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 OneSpaWorld Holdings and Madison Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OneSpaWorld Holdings and Madison Square Garden, you can compare the effects of market volatilities on OneSpaWorld Holdings and Madison Square 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 OneSpaWorld Holdings with a short position of Madison Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of OneSpaWorld Holdings and Madison Square.
Diversification Opportunities for OneSpaWorld Holdings and Madison Square
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between OneSpaWorld and Madison is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding OneSpaWorld Holdings and Madison Square Garden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Madison Square Garden and OneSpaWorld Holdings 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 OneSpaWorld Holdings are associated (or correlated) with Madison Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Madison Square Garden has no effect on the direction of OneSpaWorld Holdings i.e., OneSpaWorld Holdings and Madison Square go up and down completely randomly.
Pair Corralation between OneSpaWorld Holdings and Madison Square
Considering the 90-day investment horizon OneSpaWorld Holdings is expected to generate 0.76 times more return on investment than Madison Square. However, OneSpaWorld Holdings is 1.32 times less risky than Madison Square. It trades about 0.08 of its potential returns per unit of risk. Madison Square Garden is currently generating about 0.01 per unit of risk. If you would invest 1,865 in OneSpaWorld Holdings on October 19, 2024 and sell it today you would earn a total of 94.00 from holding OneSpaWorld Holdings or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OneSpaWorld Holdings vs. Madison Square Garden
Performance |
| Timeline |
| OneSpaWorld Holdings |
| Madison Square Garden |
OneSpaWorld Holdings and Madison Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OneSpaWorld Holdings and Madison Square
The main advantage of trading using opposite OneSpaWorld Holdings and Madison Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OneSpaWorld Holdings position performs unexpectedly, Madison Square 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 Madison Square will offset losses from the drop in Madison Square's long position.| OneSpaWorld Holdings vs. Escalade Incorporated | OneSpaWorld Holdings vs. Johnson Outdoors | OneSpaWorld Holdings vs. Clarus Corp | OneSpaWorld Holdings vs. Six Flags Entertainment |
| Madison Square vs. Madison Square Garden | Madison Square vs. Graham Holdings Co | Madison Square vs. Atlanta Braves Holdings, | Madison Square vs. Live Nation Entertainment |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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