Correlation Between Sphere Entertainment and Gray Television
Can any of the company-specific risk be diversified away by investing in both Sphere Entertainment and Gray Television 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 Gray Television 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 Gray Television, you can compare the effects of market volatilities on Sphere Entertainment and Gray Television 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 Gray Television. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and Gray Television.
Diversification Opportunities for Sphere Entertainment and Gray Television
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sphere and Gray is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and Gray Television in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gray Television 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 Gray Television. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gray Television has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and Gray Television go up and down completely randomly.
Pair Corralation between Sphere Entertainment and Gray Television
Given the investment horizon of 90 days Sphere Entertainment is expected to generate 24.13 times less return on investment than Gray Television. In addition to that, Sphere Entertainment is 1.27 times more volatile than Gray Television. It trades about 0.0 of its total potential returns per unit of risk. Gray Television is currently generating about 0.1 per unit of volatility. If you would invest 621.00 in Gray Television on January 11, 2025 and sell it today you would earn a total of 53.00 from holding Gray Television or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sphere Entertainment Co vs. Gray Television
Performance |
| Timeline |
| Sphere Entertainment |
| Gray Television |
Sphere Entertainment and Gray Television Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sphere Entertainment and Gray Television
The main advantage of trading using opposite Sphere Entertainment and Gray Television positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment position performs unexpectedly, Gray Television 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 Gray Television will offset losses from the drop in Gray Television's long position.| Sphere Entertainment vs. Portillos | Sphere Entertainment vs. McDonalds | Sphere Entertainment vs. WT Offshore | Sphere Entertainment vs. Boyd Gaming |
| Gray Television vs. Chemours Co | Gray Television vs. Western Copper and | Gray Television vs. Tscan Therapeutics | Gray Television vs. Lithium Americas Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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