Correlation Between SOGECLAIR and Nexstar Media
Can any of the company-specific risk be diversified away by investing in both SOGECLAIR and Nexstar Media 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 SOGECLAIR and Nexstar Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SOGECLAIR SA INH and Nexstar Media Group, you can compare the effects of market volatilities on SOGECLAIR and Nexstar Media 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 SOGECLAIR with a short position of Nexstar Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOGECLAIR and Nexstar Media.
Diversification Opportunities for SOGECLAIR and Nexstar Media
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SOGECLAIR and Nexstar is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SOGECLAIR SA INH and Nexstar Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Media Group and SOGECLAIR 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 SOGECLAIR SA INH are associated (or correlated) with Nexstar Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexstar Media Group has no effect on the direction of SOGECLAIR i.e., SOGECLAIR and Nexstar Media go up and down completely randomly.
Pair Corralation between SOGECLAIR and Nexstar Media
Assuming the 90 days horizon SOGECLAIR SA INH is expected to under-perform the Nexstar Media. In addition to that, SOGECLAIR is 1.51 times more volatile than Nexstar Media Group. It trades about -0.09 of its total potential returns per unit of risk. Nexstar Media Group is currently generating about -0.07 per unit of volatility. If you would invest 15,505 in Nexstar Media Group on November 7, 2024 and sell it today you would lose (420.00) from holding Nexstar Media Group or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
SOGECLAIR SA INH vs. Nexstar Media Group
Performance |
| Timeline |
| SOGECLAIR SA INH |
| Nexstar Media Group |
SOGECLAIR and Nexstar Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOGECLAIR and Nexstar Media
The main advantage of trading using opposite SOGECLAIR and Nexstar Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOGECLAIR position performs unexpectedly, Nexstar Media 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 Nexstar Media will offset losses from the drop in Nexstar Media's long position.| SOGECLAIR vs. The Boeing | SOGECLAIR vs. Lockheed Martin | SOGECLAIR vs. The Boeing | SOGECLAIR vs. Lockheed Martin |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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