Correlation Between Maxx Sports and Madison Square

Can any of the company-specific risk be diversified away by investing in both Maxx Sports and Madison Square 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 Maxx Sports and Madison Square into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Maxx Sports TV and Madison Square Garden, you can compare the effects of market volatilities on Maxx Sports and Madison Square 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 Maxx Sports with a short position of Madison Square. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxx Sports and Madison Square.

Diversification Opportunities for Maxx Sports and Madison Square

0.0

Correlation Coefficient

Maxx Sports  Madison Square

Pay attention - limited upside

The 3 months correlation between Maxx and Madison is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Maxx Sports TV and Madison Square Garden in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Madison Square Garden and Maxx Sports 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 Maxx Sports TV are associated (or correlated) with Madison Square. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Madison Square Garden has no effect on the direction of Maxx Sports i.e., Maxx Sports and Madison Square go up and down completely randomly.

Pair Corralation between Maxx Sports and Madison Square

If you would invest  0.03  in Maxx Sports TV on December 28, 2024 and sell it today you would earn a total of  0.00  from holding Maxx Sports TV or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Maxx Sports TV  vs.  Madison Square Garden

Maxx Sports TV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Maxx Sports TV has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Maxx Sports is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Madison Square Garden

Risk-Adjusted Performance

Very Weak

Over the last 90 days Madison Square Garden has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Maxx Sports and Madison Square

The main advantage of trading using opposite Maxx Sports and Madison Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxx Sports position performs unexpectedly, Madison Square 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 Madison Square will offset losses from the drop in Madison Square's long position.

The idea behind Maxx Sports TV and Madison Square Garden pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.