Correlation Between TOWNSQUARE MEDIA and Lenox Pasifik
Can any of the company-specific risk be diversified away by investing in both TOWNSQUARE MEDIA and Lenox Pasifik 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 Lenox Pasifik 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 Lenox Pasifik Investama, you can compare the effects of market volatilities on TOWNSQUARE MEDIA and Lenox Pasifik 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 Lenox Pasifik. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOWNSQUARE MEDIA and Lenox Pasifik.
Diversification Opportunities for TOWNSQUARE MEDIA and Lenox Pasifik
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between TOWNSQUARE and Lenox is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding TOWNSQUARE MEDIA INC and Lenox Pasifik Investama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lenox Pasifik Investama 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 Lenox Pasifik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lenox Pasifik Investama has no effect on the direction of TOWNSQUARE MEDIA i.e., TOWNSQUARE MEDIA and Lenox Pasifik go up and down completely randomly.
Pair Corralation between TOWNSQUARE MEDIA and Lenox Pasifik
Assuming the 90 days trading horizon TOWNSQUARE MEDIA INC is expected to generate 0.18 times more return on investment than Lenox Pasifik. However, TOWNSQUARE MEDIA INC is 5.49 times less risky than Lenox Pasifik. It trades about 0.04 of its potential returns per unit of risk. Lenox Pasifik Investama is currently generating about -0.1 per unit of risk. If you would invest 920.00 in TOWNSQUARE MEDIA INC on September 14, 2024 and sell it today you would earn a total of 10.00 from holding TOWNSQUARE MEDIA INC or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOWNSQUARE MEDIA INC vs. Lenox Pasifik Investama
Performance |
| Timeline |
| TOWNSQUARE MEDIA INC |
| Lenox Pasifik Investama |
TOWNSQUARE MEDIA and Lenox Pasifik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOWNSQUARE MEDIA and Lenox Pasifik
The main advantage of trading using opposite TOWNSQUARE MEDIA and Lenox Pasifik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOWNSQUARE MEDIA position performs unexpectedly, Lenox Pasifik 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 Lenox Pasifik will offset losses from the drop in Lenox Pasifik's long position.| TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc | TOWNSQUARE MEDIA vs. Apple Inc |
| Lenox Pasifik vs. Dave Busters Entertainment | Lenox Pasifik vs. Hollywood Bowl Group | Lenox Pasifik vs. Apollo Investment Corp | Lenox Pasifik vs. TOWNSQUARE MEDIA 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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