Correlation Between Sphere Entertainment and Sabra Healthcare
Can any of the company-specific risk be diversified away by investing in both Sphere Entertainment and Sabra Healthcare 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 Sabra Healthcare 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 Sabra Healthcare REIT, you can compare the effects of market volatilities on Sphere Entertainment and Sabra Healthcare 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 Sabra Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and Sabra Healthcare.
Diversification Opportunities for Sphere Entertainment and Sabra Healthcare
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sphere and Sabra is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and Sabra Healthcare REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabra Healthcare REIT 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 Sabra Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabra Healthcare REIT has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and Sabra Healthcare go up and down completely randomly.
Pair Corralation between Sphere Entertainment and Sabra Healthcare
Given the investment horizon of 90 days Sphere Entertainment Co is expected to under-perform the Sabra Healthcare. In addition to that, Sphere Entertainment is 1.68 times more volatile than Sabra Healthcare REIT. It trades about -0.31 of its total potential returns per unit of risk. Sabra Healthcare REIT is currently generating about -0.28 per unit of volatility. If you would invest 1,935 in Sabra Healthcare REIT on September 12, 2024 and sell it today you would lose (179.50) from holding Sabra Healthcare REIT or give up 9.28% 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. Sabra Healthcare REIT
Performance |
| Timeline |
| Sphere Entertainment |
| Sabra Healthcare REIT |
Sphere Entertainment and Sabra Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sphere Entertainment and Sabra Healthcare
The main advantage of trading using opposite Sphere Entertainment and Sabra Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment position performs unexpectedly, Sabra Healthcare 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 Sabra Healthcare will offset losses from the drop in Sabra Healthcare's long position.| Sphere Entertainment vs. Aeye Inc | Sphere Entertainment vs. Ep Emerging Markets | Sphere Entertainment vs. ALPS Emerging Sector | Sphere Entertainment vs. First Physicians Capital |
| Sabra Healthcare vs. Healthcare Realty Trust | Sabra Healthcare vs. Healthpeak Properties | Sabra Healthcare vs. Community Healthcare Trust | Sabra Healthcare vs. Universal Health Realty |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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