Correlation Between Atlanta Braves and Madison Square

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

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

Diversification Opportunities for Atlanta Braves and Madison Square

0.16

Correlation Coefficient

Atlanta Braves  Madison Square

Average diversification

The 3 months correlation between Atlanta and Madison is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Atlanta Braves Holdings, 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 Atlanta Braves 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 Atlanta Braves Holdings, 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 Atlanta Braves i.e., Atlanta Braves and Madison Square go up and down completely randomly.

Pair Corralation between Atlanta Braves and Madison Square

Assuming the 90 days horizon Atlanta Braves Holdings, is expected to generate 0.99 times more return on investment than Madison Square. However, Atlanta Braves Holdings, is 1.01 times less risky than Madison Square. It trades about 0.1 of its potential returns per unit of risk. Madison Square Garden is currently generating about -0.37 per unit of risk. If you would invest  3,815  in Atlanta Braves Holdings, on November 28, 2024 and sell it today you would earn a total of  87.00  from holding Atlanta Braves Holdings, or generate 2.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Atlanta Braves Holdings,  vs.  Madison Square Garden

Atlanta Braves Holdings,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Atlanta Braves Holdings, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Atlanta Braves is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional 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 March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Atlanta Braves and Madison Square

The main advantage of trading using opposite Atlanta Braves and Madison Square positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanta Braves 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 Atlanta Braves Holdings, 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.