Correlation Between Sphere Entertainment and Niagara Mohawk
Can any of the company-specific risk be diversified away by investing in both Sphere Entertainment and Niagara Mohawk 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 Niagara Mohawk 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 Niagara Mohawk Power, you can compare the effects of market volatilities on Sphere Entertainment and Niagara Mohawk 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 Niagara Mohawk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and Niagara Mohawk.
Diversification Opportunities for Sphere Entertainment and Niagara Mohawk
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sphere and Niagara is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and Niagara Mohawk Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niagara Mohawk Power 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 Niagara Mohawk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niagara Mohawk Power has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and Niagara Mohawk go up and down completely randomly.
Pair Corralation between Sphere Entertainment and Niagara Mohawk
Given the investment horizon of 90 days Sphere Entertainment is expected to generate 1.11 times less return on investment than Niagara Mohawk. In addition to that, Sphere Entertainment is 1.98 times more volatile than Niagara Mohawk Power. It trades about 0.04 of its total potential returns per unit of risk. Niagara Mohawk Power is currently generating about 0.09 per unit of volatility. If you would invest 5,626 in Niagara Mohawk Power on August 29, 2024 and sell it today you would earn a total of 934.00 from holding Niagara Mohawk Power or generate 16.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Sphere Entertainment Co vs. Niagara Mohawk Power
Performance |
| Timeline |
| Sphere Entertainment |
| Niagara Mohawk Power |
Sphere Entertainment and Niagara Mohawk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sphere Entertainment and Niagara Mohawk
The main advantage of trading using opposite Sphere Entertainment and Niagara Mohawk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment position performs unexpectedly, Niagara Mohawk 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 Niagara Mohawk will offset losses from the drop in Niagara Mohawk's long position.| Sphere Entertainment vs. MagnaChip Semiconductor | Sphere Entertainment vs. Taiwan Semiconductor Manufacturing | Sphere Entertainment vs. Vishay Intertechnology | Sphere Entertainment vs. Ryanair Holdings PLC |
| Niagara Mohawk vs. Mangazeya Mining | Niagara Mohawk vs. FitLife Brands, Common | Niagara Mohawk vs. Ultra Clean Holdings | Niagara Mohawk vs. Grocery Outlet Holding |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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