Correlation Between Sphere Entertainment and Anterix
Can any of the company-specific risk be diversified away by investing in both Sphere Entertainment and Anterix 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 Sphere Entertainment and Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sphere Entertainment Co and Anterix, you can compare the effects of market volatilities on Sphere Entertainment and Anterix 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 Sphere Entertainment with a short position of Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and Anterix.
Diversification Opportunities for Sphere Entertainment and Anterix
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sphere and Anterix is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix and Sphere 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 Sphere Entertainment Co are associated (or correlated) with Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and Anterix go up and down completely randomly.
Pair Corralation between Sphere Entertainment and Anterix
Given the investment horizon of 90 days Sphere Entertainment Co is expected to under-perform the Anterix. In addition to that, Sphere Entertainment is 1.11 times more volatile than Anterix. It trades about -0.14 of its total potential returns per unit of risk. Anterix is currently generating about -0.01 per unit of volatility. If you would invest 3,354 in Anterix on August 24, 2024 and sell it today you would lose (31.00) from holding Anterix or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sphere Entertainment Co vs. Anterix
Performance |
| Timeline |
| Sphere Entertainment |
| Anterix |
Sphere Entertainment and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sphere Entertainment and Anterix
The main advantage of trading using opposite Sphere Entertainment and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| Sphere Entertainment vs. Nexstar Broadcasting Group | Sphere Entertainment vs. Yuexiu Transport Infrastructure | Sphere Entertainment vs. Under Armour C | Sphere Entertainment vs. Citi Trends |
| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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