Correlation Between Sphere Entertainment and Payoneer Global

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

Diversification Opportunities for Sphere Entertainment and Payoneer Global

-0.62

Correlation Coefficient

Sphere Entertainment  Payoneer Global

Excellent diversification

The 3 months correlation between Sphere and Payoneer is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and Payoneer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global 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 Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and Payoneer Global go up and down completely randomly.

Pair Corralation between Sphere Entertainment and Payoneer Global

Given the investment horizon of 90 days Sphere Entertainment is expected to generate 5.11 times less return on investment than Payoneer Global. But when comparing it to its historical volatility, Sphere Entertainment Co is 1.09 times less risky than Payoneer Global. It trades about 0.03 of its potential returns per unit of risk. Payoneer Global is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  557.00  in Payoneer Global on September 25, 2024 and sell it today you would earn a total of  453.00  from holding Payoneer Global or generate 81.33% return on investment over 90 days.

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

Sphere Entertainment Co  vs.  Payoneer Global

Sphere Entertainment

Risk-Adjusted Performance

0 of 100

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 latest weak performance, the Stock's technical indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Payoneer Global

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Payoneer Global are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Payoneer Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sphere Entertainment and Payoneer Global

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

The idea behind Sphere Entertainment Co and Payoneer Global 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.