Correlation Between Six Flags and Madison Square
Can any of the company-specific risk be diversified away by investing in both Six Flags 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 Six Flags and Madison Square into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Six Flags Entertainment and Madison Square Garden, you can compare the effects of market volatilities on Six Flags 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 Six Flags with a short position of Madison Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Flags and Madison Square.
Diversification Opportunities for Six Flags and Madison Square
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Six and Madison is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Six Flags Entertainment 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 Six Flags 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 Six Flags Entertainment 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 Six Flags i.e., Six Flags and Madison Square go up and down completely randomly.
Pair Corralation between Six Flags and Madison Square
If you would invest 3,602 in Madison Square Garden on October 19, 2024 and sell it today you would lose (6.00) from holding Madison Square Garden or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 2.44% |
| Values | Daily Returns |
Six Flags Entertainment vs. Madison Square Garden
Performance |
| Timeline |
| Six Flags Entertainment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Madison Square Garden |
Six Flags and Madison Square Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Flags and Madison Square
The main advantage of trading using opposite Six Flags and Madison Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Flags 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.| Six Flags vs. JAKKS Pacific | Six Flags vs. OneSpaWorld Holdings | Six Flags vs. Clarus Corp | Six Flags 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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