Correlation Between Cumulus Media and Fubotv
Can any of the company-specific risk be diversified away by investing in both Cumulus Media and Fubotv 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 Fubotv 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 Fubotv Inc, you can compare the effects of market volatilities on Cumulus Media and Fubotv 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 Fubotv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and Fubotv.
Diversification Opportunities for Cumulus Media and Fubotv
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cumulus and Fubotv is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class and Fubotv Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fubotv Inc 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 Fubotv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fubotv Inc has no effect on the direction of Cumulus Media i.e., Cumulus Media and Fubotv go up and down completely randomly.
Pair Corralation between Cumulus Media and Fubotv
Given the investment horizon of 90 days Cumulus Media Class is expected to under-perform the Fubotv. In addition to that, Cumulus Media is 1.23 times more volatile than Fubotv Inc. It trades about -0.4 of its total potential returns per unit of risk. Fubotv Inc is currently generating about -0.11 per unit of volatility. If you would invest 179.00 in Fubotv Inc on August 28, 2024 and sell it today you would lose (23.00) from holding Fubotv Inc or give up 12.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cumulus Media Class vs. Fubotv Inc
Performance |
| Timeline |
| Cumulus Media Class |
| Fubotv Inc |
Cumulus Media and Fubotv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and Fubotv
The main advantage of trading using opposite Cumulus Media and Fubotv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media position performs unexpectedly, Fubotv 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 Fubotv will offset losses from the drop in Fubotv'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 |
| Fubotv vs. Cumulus Media Class | Fubotv vs. iHeartMedia Class A | Fubotv vs. Gray Television | Fubotv vs. E W Scripps |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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