Correlation Between TOWNSQUARE MEDIA and STORE ELECTRONIC
Can any of the company-specific risk be diversified away by investing in both TOWNSQUARE MEDIA and STORE ELECTRONIC 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 STORE ELECTRONIC 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 STORE ELECTRONIC, you can compare the effects of market volatilities on TOWNSQUARE MEDIA and STORE ELECTRONIC 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 STORE ELECTRONIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of TOWNSQUARE MEDIA and STORE ELECTRONIC.
Diversification Opportunities for TOWNSQUARE MEDIA and STORE ELECTRONIC
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TOWNSQUARE and STORE is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding TOWNSQUARE MEDIA INC and STORE ELECTRONIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE ELECTRONIC 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 STORE ELECTRONIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE ELECTRONIC has no effect on the direction of TOWNSQUARE MEDIA i.e., TOWNSQUARE MEDIA and STORE ELECTRONIC go up and down completely randomly.
Pair Corralation between TOWNSQUARE MEDIA and STORE ELECTRONIC
Assuming the 90 days trading horizon TOWNSQUARE MEDIA INC is expected to generate 1.19 times more return on investment than STORE ELECTRONIC. However, TOWNSQUARE MEDIA is 1.19 times more volatile than STORE ELECTRONIC. It trades about 0.09 of its potential returns per unit of risk. STORE ELECTRONIC is currently generating about 0.0 per unit of risk. If you would invest 895.00 in TOWNSQUARE MEDIA INC on September 3, 2024 and sell it today you would earn a total of 30.00 from holding TOWNSQUARE MEDIA INC or generate 3.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TOWNSQUARE MEDIA INC vs. STORE ELECTRONIC
Performance |
| Timeline |
| TOWNSQUARE MEDIA INC |
| STORE ELECTRONIC |
TOWNSQUARE MEDIA and STORE ELECTRONIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TOWNSQUARE MEDIA and STORE ELECTRONIC
The main advantage of trading using opposite TOWNSQUARE MEDIA and STORE ELECTRONIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TOWNSQUARE MEDIA position performs unexpectedly, STORE ELECTRONIC 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 STORE ELECTRONIC will offset losses from the drop in STORE ELECTRONIC's long position.| TOWNSQUARE MEDIA vs. TOTAL GABON | TOWNSQUARE MEDIA vs. Walgreens Boots Alliance | TOWNSQUARE MEDIA vs. Peak Resources Limited |
| STORE ELECTRONIC vs. TOTAL GABON | STORE ELECTRONIC vs. Walgreens Boots Alliance | STORE ELECTRONIC vs. Peak Resources Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |