Correlation Between Townsquare Media and Bayerische Motoren
Specify exactly 2 symbols:
By analyzing existing cross correlation between Townsquare Media and Bayerische Motoren Werke, you can compare the effects of market volatilities on Townsquare Media and Bayerische Motoren 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 Bayerische Motoren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Townsquare Media and Bayerische Motoren.
Diversification Opportunities for Townsquare Media and Bayerische Motoren
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Townsquare and Bayerische is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Townsquare Media and Bayerische Motoren Werke in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayerische Motoren Werke 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 are associated (or correlated) with Bayerische Motoren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayerische Motoren Werke has no effect on the direction of Townsquare Media i.e., Townsquare Media and Bayerische Motoren go up and down completely randomly.
Pair Corralation between Townsquare Media and Bayerische Motoren
Assuming the 90 days horizon Townsquare Media is expected to under-perform the Bayerische Motoren. In addition to that, Townsquare Media is 1.96 times more volatile than Bayerische Motoren Werke. It trades about -0.03 of its total potential returns per unit of risk. Bayerische Motoren Werke is currently generating about 0.09 per unit of volatility. If you would invest 7,220 in Bayerische Motoren Werke on October 25, 2024 and sell it today you would earn a total of 150.00 from holding Bayerische Motoren Werke or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Townsquare Media vs. Bayerische Motoren Werke
Performance |
| Timeline |
| Townsquare Media |
| Bayerische Motoren Werke |
Townsquare Media and Bayerische Motoren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Townsquare Media and Bayerische Motoren
The main advantage of trading using opposite Townsquare Media and Bayerische Motoren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Townsquare Media position performs unexpectedly, Bayerische Motoren 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 Bayerische Motoren will offset losses from the drop in Bayerische Motoren's long position.| Townsquare Media vs. Xtrackers LevDAX | Townsquare Media vs. Lyxor 1 | Townsquare Media vs. Xtrackers ShortDAX |
| Bayerische Motoren vs. Townsquare Media | Bayerische Motoren vs. GigaMedia | Bayerische Motoren vs. GEELY AUTOMOBILE | Bayerische Motoren vs. PENN Entertainment |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |