Correlation Between Fonu2 and Salem Media
Can any of the company-specific risk be diversified away by investing in both Fonu2 and Salem Media 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 Fonu2 and Salem Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fonu2 Inc and Salem Media Group, you can compare the effects of market volatilities on Fonu2 and Salem Media 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 Fonu2 with a short position of Salem Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fonu2 and Salem Media.
Diversification Opportunities for Fonu2 and Salem Media
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fonu2 and Salem is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Fonu2 Inc and Salem Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salem Media Group and Fonu2 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 Fonu2 Inc are associated (or correlated) with Salem Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salem Media Group has no effect on the direction of Fonu2 i.e., Fonu2 and Salem Media go up and down completely randomly.
Pair Corralation between Fonu2 and Salem Media
If you would invest 98.00 in Salem Media Group on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Salem Media Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.88% |
| Values | Daily Returns |
Fonu2 Inc vs. Salem Media Group
Performance |
| Timeline |
| Fonu2 Inc |
| Salem Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fonu2 and Salem Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fonu2 and Salem Media
The main advantage of trading using opposite Fonu2 and Salem Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fonu2 position performs unexpectedly, Salem Media 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 Salem Media will offset losses from the drop in Salem Media's long position.| Fonu2 vs. Television Broadcasts | Fonu2 vs. Fubotv Inc | Fonu2 vs. Cumulus Media Class | Fonu2 vs. E W Scripps |
| Salem Media vs. Mediaco Holding | Salem Media vs. Saga Communications | Salem Media vs. ProSiebenSat1 Media AG | Salem Media vs. Cumulus Media Class |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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