Correlation Between Emmis Communications and Mediaco Holding
Can any of the company-specific risk be diversified away by investing in both Emmis Communications and Mediaco Holding 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 Emmis Communications and Mediaco Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emmis Communications Corp and Mediaco Holding, you can compare the effects of market volatilities on Emmis Communications and Mediaco Holding 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 Emmis Communications with a short position of Mediaco Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emmis Communications and Mediaco Holding.
Diversification Opportunities for Emmis Communications and Mediaco Holding
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emmis and Mediaco is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Emmis Communications Corp and Mediaco Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediaco Holding and Emmis Communications 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 Emmis Communications Corp are associated (or correlated) with Mediaco Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediaco Holding has no effect on the direction of Emmis Communications i.e., Emmis Communications and Mediaco Holding go up and down completely randomly.
Pair Corralation between Emmis Communications and Mediaco Holding
Given the investment horizon of 90 days Emmis Communications Corp is expected to generate 0.56 times more return on investment than Mediaco Holding. However, Emmis Communications Corp is 1.78 times less risky than Mediaco Holding. It trades about 0.12 of its potential returns per unit of risk. Mediaco Holding is currently generating about 0.05 per unit of risk. If you would invest 305.00 in Emmis Communications Corp on August 28, 2024 and sell it today you would earn a total of 85.00 from holding Emmis Communications Corp or generate 27.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.69% |
| Values | Daily Returns |
Emmis Communications Corp vs. Mediaco Holding
Performance |
| Timeline |
| Emmis Communications Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mediaco Holding |
Emmis Communications and Mediaco Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emmis Communications and Mediaco Holding
The main advantage of trading using opposite Emmis Communications and Mediaco Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emmis Communications position performs unexpectedly, Mediaco Holding 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 Mediaco Holding will offset losses from the drop in Mediaco Holding's long position.| Emmis Communications vs. RTL Group SA | Emmis Communications vs. ITV plc | Emmis Communications vs. ITV PLC ADR | Emmis Communications vs. iHeartMedia |
| Mediaco Holding vs. ADTRAN Inc | Mediaco Holding vs. Belden Inc | Mediaco Holding vs. ADC Therapeutics SA | Mediaco Holding vs. Comtech Telecommunications Corp |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |