Correlation Between Cumulus Media and AlphaVest Acquisition
Can any of the company-specific risk be diversified away by investing in both Cumulus Media and AlphaVest Acquisition 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 Cumulus Media and AlphaVest Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cumulus Media Class and AlphaVest Acquisition Corp, you can compare the effects of market volatilities on Cumulus Media and AlphaVest Acquisition 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 Cumulus Media with a short position of AlphaVest Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and AlphaVest Acquisition.
Diversification Opportunities for Cumulus Media and AlphaVest Acquisition
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cumulus and AlphaVest is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class and AlphaVest Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AlphaVest Acquisition and Cumulus 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 Cumulus Media Class are associated (or correlated) with AlphaVest Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AlphaVest Acquisition has no effect on the direction of Cumulus Media i.e., Cumulus Media and AlphaVest Acquisition go up and down completely randomly.
Pair Corralation between Cumulus Media and AlphaVest Acquisition
Given the investment horizon of 90 days Cumulus Media Class is expected to under-perform the AlphaVest Acquisition. In addition to that, Cumulus Media is 18.11 times more volatile than AlphaVest Acquisition Corp. It trades about -0.08 of its total potential returns per unit of risk. AlphaVest Acquisition Corp is currently generating about 0.11 per unit of volatility. If you would invest 1,027 in AlphaVest Acquisition Corp on January 16, 2025 and sell it today you would earn a total of 137.00 from holding AlphaVest Acquisition Corp or generate 13.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 88.48% |
| Values | Daily Returns |
Cumulus Media Class vs. AlphaVest Acquisition Corp
Performance |
| Timeline |
| Cumulus Media Class |
| AlphaVest Acquisition |
Cumulus Media and AlphaVest Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and AlphaVest Acquisition
The main advantage of trading using opposite Cumulus Media and AlphaVest Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media position performs unexpectedly, AlphaVest Acquisition 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 AlphaVest Acquisition will offset losses from the drop in AlphaVest Acquisition's long position.| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
| AlphaVest Acquisition vs. RTG Mining | AlphaVest Acquisition vs. Magna Mining | AlphaVest Acquisition vs. United Rentals | AlphaVest Acquisition vs. FlexShopper |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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