Correlation Between Sphere Entertainment and United Natural
Can any of the company-specific risk be diversified away by investing in both Sphere Entertainment and United Natural 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 United Natural 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 United Natural Foods, you can compare the effects of market volatilities on Sphere Entertainment and United Natural 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 United Natural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and United Natural.
Diversification Opportunities for Sphere Entertainment and United Natural
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sphere and United is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and United Natural Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Natural Foods 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 United Natural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Natural Foods has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and United Natural go up and down completely randomly.
Pair Corralation between Sphere Entertainment and United Natural
Given the investment horizon of 90 days Sphere Entertainment Co is expected to generate 0.83 times more return on investment than United Natural. However, Sphere Entertainment Co is 1.2 times less risky than United Natural. It trades about 0.22 of its potential returns per unit of risk. United Natural Foods is currently generating about 0.14 per unit of risk. If you would invest 4,306 in Sphere Entertainment Co on November 5, 2024 and sell it today you would earn a total of 354.00 from holding Sphere Entertainment Co or generate 8.22% 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. United Natural Foods
Performance |
| Timeline |
| Sphere Entertainment |
| United Natural Foods |
Sphere Entertainment and United Natural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sphere Entertainment and United Natural
The main advantage of trading using opposite Sphere Entertainment and United Natural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment position performs unexpectedly, United Natural 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 United Natural will offset losses from the drop in United Natural's long position.| Sphere Entertainment vs. Marchex | Sphere Entertainment vs. Magnite | Sphere Entertainment vs. Inhibrx | Sphere Entertainment vs. Tarsus Pharmaceuticals |
| United Natural vs. The Chefs Warehouse | United Natural vs. Mission Produce | United Natural vs. The Andersons | United Natural vs. Performance Food Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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