Correlation Between Cumulus Media and Maplebear Common
Can any of the company-specific risk be diversified away by investing in both Cumulus Media and Maplebear Common 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 Maplebear Common 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 Maplebear Common Stock, you can compare the effects of market volatilities on Cumulus Media and Maplebear Common 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 Maplebear Common. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and Maplebear Common.
Diversification Opportunities for Cumulus Media and Maplebear Common
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cumulus and Maplebear is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class and Maplebear Common Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maplebear Common Stock 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 Maplebear Common. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maplebear Common Stock has no effect on the direction of Cumulus Media i.e., Cumulus Media and Maplebear Common go up and down completely randomly.
Pair Corralation between Cumulus Media and Maplebear Common
Given the investment horizon of 90 days Cumulus Media Class is expected to under-perform the Maplebear Common. In addition to that, Cumulus Media is 1.87 times more volatile than Maplebear Common Stock. It trades about -0.14 of its total potential returns per unit of risk. Maplebear Common Stock is currently generating about 0.12 per unit of volatility. If you would invest 3,095 in Maplebear Common Stock on September 3, 2024 and sell it today you would earn a total of 1,256 from holding Maplebear Common Stock or generate 40.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cumulus Media Class vs. Maplebear Common Stock
Performance |
| Timeline |
| Cumulus Media Class |
| Maplebear Common Stock |
Cumulus Media and Maplebear Common Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and Maplebear Common
The main advantage of trading using opposite Cumulus Media and Maplebear Common positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media position performs unexpectedly, Maplebear Common 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 Maplebear Common will offset losses from the drop in Maplebear Common'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 |
| Maplebear Common vs. Dominos Pizza | Maplebear Common vs. Ralph Lauren Corp | Maplebear Common vs. Kura Sushi USA | Maplebear Common vs. Citi Trends |
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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