Correlation Between Sphere Entertainment and Mechel OAO
Can any of the company-specific risk be diversified away by investing in both Sphere Entertainment and Mechel OAO 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 Mechel OAO 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 Mechel OAO, you can compare the effects of market volatilities on Sphere Entertainment and Mechel OAO 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 Mechel OAO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and Mechel OAO.
Diversification Opportunities for Sphere Entertainment and Mechel OAO
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sphere and Mechel is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and Mechel OAO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mechel OAO 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 Mechel OAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mechel OAO has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and Mechel OAO go up and down completely randomly.
Pair Corralation between Sphere Entertainment and Mechel OAO
If you would invest (100.00) in Mechel OAO on September 15, 2024 and sell it today you would earn a total of 100.00 from holding Mechel OAO or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sphere Entertainment Co vs. Mechel OAO
Performance |
| Timeline |
| Sphere Entertainment |
| Mechel OAO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sphere Entertainment and Mechel OAO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sphere Entertainment and Mechel OAO
The main advantage of trading using opposite Sphere Entertainment and Mechel OAO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment position performs unexpectedly, Mechel OAO 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 Mechel OAO will offset losses from the drop in Mechel OAO's long position.| Sphere Entertainment vs. Evolution Mining | Sphere Entertainment vs. Kaltura | Sphere Entertainment vs. FARO Technologies | Sphere Entertainment vs. Grupo Simec SAB |
| Mechel OAO vs. Acme United | Mechel OAO vs. Skechers USA | Mechel OAO vs. Rocky Brands | Mechel OAO vs. Mannatech Incorporated |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |