Correlation Between Duluth Holdings and Nexstar Broadcasting
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings and Nexstar Broadcasting 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 Duluth Holdings and Nexstar Broadcasting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and Nexstar Broadcasting Group, you can compare the effects of market volatilities on Duluth Holdings and Nexstar Broadcasting 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 Duluth Holdings with a short position of Nexstar Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and Nexstar Broadcasting.
Diversification Opportunities for Duluth Holdings and Nexstar Broadcasting
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Duluth and Nexstar is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and Nexstar Broadcasting Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Broadcasting and Duluth Holdings 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 Duluth Holdings are associated (or correlated) with Nexstar Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexstar Broadcasting has no effect on the direction of Duluth Holdings i.e., Duluth Holdings and Nexstar Broadcasting go up and down completely randomly.
Pair Corralation between Duluth Holdings and Nexstar Broadcasting
Given the investment horizon of 90 days Duluth Holdings is expected to generate 0.95 times more return on investment than Nexstar Broadcasting. However, Duluth Holdings is 1.05 times less risky than Nexstar Broadcasting. It trades about 0.11 of its potential returns per unit of risk. Nexstar Broadcasting Group is currently generating about -0.02 per unit of risk. If you would invest 361.00 in Duluth Holdings on September 2, 2024 and sell it today you would earn a total of 22.00 from holding Duluth Holdings or generate 6.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duluth Holdings vs. Nexstar Broadcasting Group
Performance |
| Timeline |
| Duluth Holdings |
| Nexstar Broadcasting |
Duluth Holdings and Nexstar Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and Nexstar Broadcasting
The main advantage of trading using opposite Duluth Holdings and Nexstar Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings position performs unexpectedly, Nexstar Broadcasting 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 Broadcasting will offset losses from the drop in Nexstar Broadcasting's long position.| Duluth Holdings vs. Capri Holdings | Duluth Holdings vs. Movado Group | Duluth Holdings vs. Tapestry | Duluth Holdings vs. Brilliant Earth Group |
| Nexstar Broadcasting vs. News Corp B | Nexstar Broadcasting vs. Fox Corp Class | Nexstar Broadcasting vs. Liberty Media | Nexstar Broadcasting vs. AMC Networks |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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