Correlation Between Cumulus Media and TV Azteca
Can any of the company-specific risk be diversified away by investing in both Cumulus Media and TV Azteca 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 TV Azteca 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 TV Azteca SAB, you can compare the effects of market volatilities on Cumulus Media and TV Azteca 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 TV Azteca. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and TV Azteca.
Diversification Opportunities for Cumulus Media and TV Azteca
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cumulus and AZTEF is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class and TV Azteca SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TV Azteca SAB 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 TV Azteca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TV Azteca SAB has no effect on the direction of Cumulus Media i.e., Cumulus Media and TV Azteca go up and down completely randomly.
Pair Corralation between Cumulus Media and TV Azteca
Given the investment horizon of 90 days Cumulus Media is expected to generate 35.23 times less return on investment than TV Azteca. But when comparing it to its historical volatility, Cumulus Media Class is 33.89 times less risky than TV Azteca. It trades about 0.2 of its potential returns per unit of risk. TV Azteca SAB is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 0.00 in TV Azteca SAB on November 3, 2024 and sell it today you would earn a total of 0.03 from holding TV Azteca SAB or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 91.3% |
| Values | Daily Returns |
Cumulus Media Class vs. TV Azteca SAB
Performance |
| Timeline |
| Cumulus Media Class |
| TV Azteca SAB |
Cumulus Media and TV Azteca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and TV Azteca
The main advantage of trading using opposite Cumulus Media and TV Azteca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media position performs unexpectedly, TV Azteca 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 TV Azteca will offset losses from the drop in TV Azteca'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 |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |