Correlation Between Sphere Entertainment and Entegris
Can any of the company-specific risk be diversified away by investing in both Sphere Entertainment and Entegris 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 Entegris 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 Entegris, you can compare the effects of market volatilities on Sphere Entertainment and Entegris 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 Entegris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and Entegris.
Diversification Opportunities for Sphere Entertainment and Entegris
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sphere and Entegris is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and Entegris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entegris 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 Entegris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entegris has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and Entegris go up and down completely randomly.
Pair Corralation between Sphere Entertainment and Entegris
Given the investment horizon of 90 days Sphere Entertainment Co is expected to generate 1.32 times more return on investment than Entegris. However, Sphere Entertainment is 1.32 times more volatile than Entegris. It trades about 0.04 of its potential returns per unit of risk. Entegris is currently generating about 0.01 per unit of risk. If you would invest 3,058 in Sphere Entertainment Co on August 29, 2024 and sell it today you would earn a total of 964.00 from holding Sphere Entertainment Co or generate 31.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sphere Entertainment Co vs. Entegris
Performance |
| Timeline |
| Sphere Entertainment |
| Entegris |
Sphere Entertainment and Entegris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sphere Entertainment and Entegris
The main advantage of trading using opposite Sphere Entertainment and Entegris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment position performs unexpectedly, Entegris 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 Entegris will offset losses from the drop in Entegris' long position.| Sphere Entertainment vs. MagnaChip Semiconductor | Sphere Entertainment vs. Taiwan Semiconductor Manufacturing | Sphere Entertainment vs. Vishay Intertechnology | Sphere Entertainment vs. Ryanair Holdings PLC |
| Entegris vs. Teradyne | Entegris vs. Ichor Holdings | Entegris vs. Amtech Systems | Entegris vs. Veeco Instruments |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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