Correlation Between Madison Square and Atlanta Braves

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

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

Diversification Opportunities for Madison Square and Atlanta Braves

-0.57

Correlation Coefficient

Madison Square  Atlanta Braves

Excellent diversification

The 3 months correlation between Madison and Atlanta is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Madison Square Garden and Atlanta Braves Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlanta Braves Holdings, and Madison Square 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 Madison Square Garden are associated (or correlated) with Atlanta Braves. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlanta Braves Holdings, has no effect on the direction of Madison Square i.e., Madison Square and Atlanta Braves go up and down completely randomly.

Pair Corralation between Madison Square and Atlanta Braves

Given the investment horizon of 90 days Madison Square Garden is expected to under-perform the Atlanta Braves. In addition to that, Madison Square is 1.1 times more volatile than Atlanta Braves Holdings,. It trades about -0.21 of its total potential returns per unit of risk. Atlanta Braves Holdings, is currently generating about 0.14 per unit of volatility. If you would invest  4,030  in Atlanta Braves Holdings, on December 30, 2024 and sell it today you would earn a total of  376.00  from holding Atlanta Braves Holdings, or generate 9.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Madison Square Garden  vs.  Atlanta Braves Holdings,

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.

Atlanta Braves Holdings,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Atlanta Braves Holdings, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Atlanta Braves may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Madison Square and Atlanta Braves

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

The idea behind Madison Square Garden and Atlanta Braves Holdings, 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.