Correlation Between Sports Entertainment and Maggie Beer
Can any of the company-specific risk be diversified away by investing in both Sports Entertainment and Maggie Beer 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 Sports Entertainment and Maggie Beer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sports Entertainment Group and Maggie Beer Holdings, you can compare the effects of market volatilities on Sports Entertainment and Maggie Beer 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 Sports Entertainment with a short position of Maggie Beer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Entertainment and Maggie Beer.
Diversification Opportunities for Sports Entertainment and Maggie Beer
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Sports and Maggie is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Sports Entertainment Group and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings and Sports Entertainment 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 Sports Entertainment Group are associated (or correlated) with Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Sports Entertainment i.e., Sports Entertainment and Maggie Beer go up and down completely randomly.
Pair Corralation between Sports Entertainment and Maggie Beer
Assuming the 90 days trading horizon Sports Entertainment Group is expected to under-perform the Maggie Beer. In addition to that, Sports Entertainment is 2.32 times more volatile than Maggie Beer Holdings. It trades about -0.08 of its total potential returns per unit of risk. Maggie Beer Holdings is currently generating about 0.25 per unit of volatility. If you would invest 5.30 in Maggie Beer Holdings on October 15, 2024 and sell it today you would earn a total of 0.50 from holding Maggie Beer Holdings or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sports Entertainment Group vs. Maggie Beer Holdings
Performance |
| Timeline |
| Sports Entertainment |
| Maggie Beer Holdings |
Sports Entertainment and Maggie Beer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sports Entertainment and Maggie Beer
The main advantage of trading using opposite Sports Entertainment and Maggie Beer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Entertainment position performs unexpectedly, Maggie Beer 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 Maggie Beer will offset losses from the drop in Maggie Beer's long position.| Sports Entertainment vs. Queste Communications | Sports Entertainment vs. TPG Telecom | Sports Entertainment vs. Centuria Industrial Reit | Sports Entertainment vs. Super Retail Group |
| Maggie Beer vs. Data3 | Maggie Beer vs. Platinum Asset Management | Maggie Beer vs. Embark Education Group | Maggie Beer vs. Janison Education Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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