Correlation Between Sphere Entertainment and Atlanta Braves

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

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

Diversification Opportunities for Sphere Entertainment and Atlanta Braves

-0.06

Correlation Coefficient

Sphere Entertainment  Atlanta Braves

Good diversification

The 3 months correlation between Sphere and Atlanta is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co 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 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 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 Sphere Entertainment i.e., Sphere Entertainment and Atlanta Braves go up and down completely randomly.

Pair Corralation between Sphere Entertainment and Atlanta Braves

Given the investment horizon of 90 days Sphere Entertainment Co is expected to under-perform the Atlanta Braves. In addition to that, Sphere Entertainment is 2.72 times more volatile than Atlanta Braves Holdings,. It trades about -0.08 of its total potential returns per unit of risk. Atlanta Braves Holdings, is currently generating about 0.09 per unit of volatility. If you would invest  3,782  in Atlanta Braves Holdings, on December 29, 2024 and sell it today you would earn a total of  223.00  from holding Atlanta Braves Holdings, or generate 5.9% return on investment over 90 days.

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

Sphere Entertainment Co  vs.  Atlanta Braves Holdings,

Sphere Entertainment

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sphere Entertainment Co has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's technical indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Atlanta Braves Holdings,

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atlanta Braves Holdings, are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Sphere Entertainment and Atlanta Braves

The main advantage of trading using opposite Sphere Entertainment and Atlanta Braves positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sphere Entertainment 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 Sphere Entertainment Co 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .