Correlation Between TOWNSQUARE MEDIA and Sixt Leasing
Can any of the company-specific risk be diversified away by investing in both TOWNSQUARE MEDIA and Sixt Leasing 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 TOWNSQUARE MEDIA and Sixt Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TOWNSQUARE MEDIA INC and Sixt Leasing SE, you can compare the effects of market volatilities on TOWNSQUARE MEDIA and Sixt Leasing 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 TOWNSQUARE MEDIA with a short position of Sixt Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOWNSQUARE MEDIA and Sixt Leasing.
Diversification Opportunities for TOWNSQUARE MEDIA and Sixt Leasing
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TOWNSQUARE and Sixt is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding TOWNSQUARE MEDIA INC and Sixt Leasing SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sixt Leasing SE and TOWNSQUARE MEDIA 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 TOWNSQUARE MEDIA INC are associated (or correlated) with Sixt Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sixt Leasing SE has no effect on the direction of TOWNSQUARE MEDIA i.e., TOWNSQUARE MEDIA and Sixt Leasing go up and down completely randomly.
Pair Corralation between TOWNSQUARE MEDIA and Sixt Leasing
Assuming the 90 days trading horizon TOWNSQUARE MEDIA INC is expected to generate 2.23 times more return on investment than Sixt Leasing. However, TOWNSQUARE MEDIA is 2.23 times more volatile than Sixt Leasing SE. It trades about 0.01 of its potential returns per unit of risk. Sixt Leasing SE is currently generating about -0.04 per unit of risk. If you would invest 976.00 in TOWNSQUARE MEDIA INC on September 12, 2024 and sell it today you would lose (51.00) from holding TOWNSQUARE MEDIA INC or give up 5.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOWNSQUARE MEDIA INC vs. Sixt Leasing SE
Performance |
| Timeline |
| TOWNSQUARE MEDIA INC |
| Sixt Leasing SE |
TOWNSQUARE MEDIA and Sixt Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOWNSQUARE MEDIA and Sixt Leasing
The main advantage of trading using opposite TOWNSQUARE MEDIA and Sixt Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOWNSQUARE MEDIA position performs unexpectedly, Sixt Leasing 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 Sixt Leasing will offset losses from the drop in Sixt Leasing's long position.| TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc |
| Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc | Sixt Leasing vs. Apple Inc |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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