Correlation Between Sportradar Group and New York

Can any of the company-specific risk be diversified away by investing in both Sportradar Group and New York 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 Sportradar Group and New York into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sportradar Group AG and New York Mortgage, you can compare the effects of market volatilities on Sportradar Group and New York 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 Sportradar Group with a short position of New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sportradar Group and New York.

Diversification Opportunities for Sportradar Group and New York

0.5

Correlation Coefficient

Sportradar Group  New York

Very weak diversification

The 3 months correlation between Sportradar and New is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sportradar Group AG and New York Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Mortgage and Sportradar Group 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 Sportradar Group AG are associated (or correlated) with New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Mortgage has no effect on the direction of Sportradar Group i.e., Sportradar Group and New York go up and down completely randomly.

Pair Corralation between Sportradar Group and New York

Given the investment horizon of 90 days Sportradar Group AG is expected to generate 0.89 times more return on investment than New York. However, Sportradar Group AG is 1.12 times less risky than New York. It trades about 0.2 of its potential returns per unit of risk. New York Mortgage is currently generating about 0.05 per unit of risk. If you would invest  2,255  in Sportradar Group AG on May 8, 2025 and sell it today you would earn a total of  529.00  from holding Sportradar Group AG or generate 23.46% return on investment over 90 days.

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

Sportradar Group AG  vs.  New York Mortgage

Sportradar Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sportradar Group AG are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Sportradar Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

New York Mortgage

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in New York Mortgage are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating primary indicators, New York may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Sportradar Group and New York

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

The idea behind Sportradar Group AG and New York Mortgage 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 Transaction History module to view history of all your transactions and understand their impact on performance.