Correlation Between Sports Entertainment and Maggie Beer

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

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

Diversification Opportunities for Sports Entertainment and Maggie Beer

-0.2

Correlation Coefficient

Sports Entertainment  Maggie Beer

Good diversification

The 3 months correlation between Sports and Maggie is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sports Entertainment Group and Maggie Beer Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maggie Beer Holdings and Sports 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 Sports Entertainment Group are associated (or correlated) with Maggie Beer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maggie Beer Holdings has no effect on the direction of Sports Entertainment i.e., Sports Entertainment and Maggie Beer go up and down completely randomly.

Pair Corralation between Sports Entertainment and Maggie Beer

Assuming the 90 days trading horizon Sports Entertainment Group is expected to generate 1.01 times more return on investment than Maggie Beer. However, Sports Entertainment is 1.01 times more volatile than Maggie Beer Holdings. It trades about 0.03 of its potential returns per unit of risk. Maggie Beer Holdings is currently generating about -0.01 per unit of risk. If you would invest  21.00  in Sports Entertainment Group on March 29, 2025 and sell it today you would earn a total of  6.00  from holding Sports Entertainment Group or generate 28.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Sports Entertainment Group  vs.  Maggie Beer Holdings

Sports Entertainment

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Sports Entertainment Group are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Sports Entertainment unveiled solid returns over the last few months and may actually be approaching a breakup point.

Maggie Beer Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Maggie Beer Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical indicators, Maggie Beer may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Sports Entertainment and Maggie Beer

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

The idea behind Sports Entertainment Group and Maggie Beer 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.

Check out your portfolio center.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.