Correlation Between Sphere Entertainment and Genting Singapore

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

Diversification Opportunities for Sphere Entertainment and Genting Singapore

0.14

Correlation Coefficient

Sphere Entertainment  Genting Singapore

Average diversification

The 3 months correlation between Sphere and Genting is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and Genting Singapore PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genting Singapore PLC 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 Genting Singapore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genting Singapore PLC has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and Genting Singapore go up and down completely randomly.

Pair Corralation between Sphere Entertainment and Genting Singapore

Given the investment horizon of 90 days Sphere Entertainment Co is expected to under-perform the Genting Singapore. But the stock apears to be less risky and, when comparing its historical volatility, Sphere Entertainment Co is 1.42 times less risky than Genting Singapore. The stock trades about -0.07 of its potential returns per unit of risk. The Genting Singapore PLC is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  2,910  in Genting Singapore PLC on December 21, 2024 and sell it today you would lose (249.00) from holding Genting Singapore PLC or give up 8.56% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Sphere Entertainment Co  vs.  Genting Singapore PLC

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.

Genting Singapore PLC

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Sphere Entertainment and Genting Singapore

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

The idea behind Sphere Entertainment Co and Genting Singapore PLC 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.