Correlation Between Sphere Entertainment and GROUP
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By analyzing existing cross correlation between Sphere Entertainment Co and GROUP 1 AUTOMOTIVE, you can compare the effects of market volatilities on Sphere Entertainment and GROUP 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 GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and GROUP.
Diversification Opportunities for Sphere Entertainment and GROUP
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sphere and GROUP is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and GROUP 1 AUTOMOTIVE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GROUP 1 AUTOMOTIVE 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 GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GROUP 1 AUTOMOTIVE has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and GROUP go up and down completely randomly.
Pair Corralation between Sphere Entertainment and GROUP
Given the investment horizon of 90 days Sphere Entertainment Co is expected to under-perform the GROUP. In addition to that, Sphere Entertainment is 3.28 times more volatile than GROUP 1 AUTOMOTIVE. It trades about -0.15 of its total potential returns per unit of risk. GROUP 1 AUTOMOTIVE is currently generating about -0.21 per unit of volatility. If you would invest 9,425 in GROUP 1 AUTOMOTIVE on August 29, 2024 and sell it today you would lose (274.00) from holding GROUP 1 AUTOMOTIVE or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 86.96% |
| Values | Daily Returns |
Sphere Entertainment Co vs. GROUP 1 AUTOMOTIVE
Performance |
| Timeline |
| Sphere Entertainment |
| GROUP 1 AUTOMOTIVE |
Sphere Entertainment and GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sphere Entertainment and GROUP
The main advantage of trading using opposite Sphere Entertainment and GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment position performs unexpectedly, GROUP 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 GROUP will offset losses from the drop in GROUP'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 |
| GROUP vs. Sphere Entertainment Co | GROUP vs. Radcom | GROUP vs. WiMi Hologram Cloud | GROUP vs. Constellation Brands Class |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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