Correlation Between Sphere Entertainment and UNION
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By analyzing existing cross correlation between Sphere Entertainment Co and UNION ELEC 295, you can compare the effects of market volatilities on Sphere Entertainment and UNION 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 UNION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and UNION.
Diversification Opportunities for Sphere Entertainment and UNION
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sphere and UNION is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and UNION ELEC 295 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNION ELEC 295 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 UNION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNION ELEC 295 has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and UNION go up and down completely randomly.
Pair Corralation between Sphere Entertainment and UNION
Given the investment horizon of 90 days Sphere Entertainment Co is expected to under-perform the UNION. In addition to that, Sphere Entertainment is 5.19 times more volatile than UNION ELEC 295. It trades about -0.31 of its total potential returns per unit of risk. UNION ELEC 295 is currently generating about -0.09 per unit of volatility. If you would invest 9,581 in UNION ELEC 295 on September 12, 2024 and sell it today you would lose (51.00) from holding UNION ELEC 295 or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.55% |
| Values | Daily Returns |
Sphere Entertainment Co vs. UNION ELEC 295
Performance |
| Timeline |
| Sphere Entertainment |
| UNION ELEC 295 |
Sphere Entertainment and UNION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sphere Entertainment and UNION
The main advantage of trading using opposite Sphere Entertainment and UNION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment position performs unexpectedly, UNION 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 UNION will offset losses from the drop in UNION'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 |
| UNION vs. Yuexiu Transport Infrastructure | UNION vs. Ryanair Holdings PLC | UNION vs. Sphere Entertainment Co | UNION vs. 51Talk Online Education |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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