Correlation Between Sphere Entertainment and Cellcom Israel

Can any of the company-specific risk be diversified away by investing in both Sphere Entertainment and Cellcom Israel 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 Cellcom Israel 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 Cellcom Israel, you can compare the effects of market volatilities on Sphere Entertainment and Cellcom Israel 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 Cellcom Israel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sphere Entertainment and Cellcom Israel.

Diversification Opportunities for Sphere Entertainment and Cellcom Israel

0.0

Correlation Coefficient

Sphere Entertainment  Cellcom Israel

Pay attention - limited upside

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

Pair Corralation between Sphere Entertainment and Cellcom Israel

If you would invest (100.00) in Cellcom Israel on December 20, 2024 and sell it today you would earn a total of  100.00  from holding Cellcom Israel or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sphere Entertainment Co  vs.  Cellcom Israel

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.

Cellcom Israel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cellcom Israel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Cellcom Israel is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Sphere Entertainment and Cellcom Israel

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

The idea behind Sphere Entertainment Co and Cellcom Israel 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 Commodity Directory module to find actively traded commodities issued by global exchanges.