Correlation Between Sphere Entertainment and ACCESS Newswire

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

Diversification Opportunities for Sphere Entertainment and ACCESS Newswire

0.66

Correlation Coefficient

Sphere Entertainment  ACCESS Newswire

Poor diversification

The 3 months correlation between Sphere and ACCESS is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sphere Entertainment Co and ACCESS Newswire in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ACCESS Newswire 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 ACCESS Newswire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ACCESS Newswire has no effect on the direction of Sphere Entertainment i.e., Sphere Entertainment and ACCESS Newswire go up and down completely randomly.

Pair Corralation between Sphere Entertainment and ACCESS Newswire

Given the investment horizon of 90 days Sphere Entertainment is expected to generate 2.15 times less return on investment than ACCESS Newswire. But when comparing it to its historical volatility, Sphere Entertainment Co is 1.43 times less risky than ACCESS Newswire. It trades about 0.07 of its potential returns per unit of risk. ACCESS Newswire is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  926.00  in ACCESS Newswire on May 22, 2025 and sell it today you would earn a total of  178.00  from holding ACCESS Newswire or generate 19.22% return on investment over 90 days.

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

Sphere Entertainment Co  vs.  ACCESS Newswire

Sphere Entertainment

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Sphere Entertainment Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical indicators, Sphere Entertainment may actually be approaching a critical reversion point that can send shares even higher in September 2025.

ACCESS Newswire

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ACCESS Newswire are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating fundamental indicators, ACCESS Newswire unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sphere Entertainment and ACCESS Newswire

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

The idea behind Sphere Entertainment Co and ACCESS Newswire 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.