Correlation Between Gray Television and Loop Media
Can any of the company-specific risk be diversified away by investing in both Gray Television and Loop 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 Gray Television and Loop Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gray Television and Loop Media, you can compare the effects of market volatilities on Gray Television and Loop 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 Gray Television with a short position of Loop Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gray Television and Loop Media.
Diversification Opportunities for Gray Television and Loop Media
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gray and Loop is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Gray Television and Loop Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Loop Media and Gray Television 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 Gray Television are associated (or correlated) with Loop Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Loop Media has no effect on the direction of Gray Television i.e., Gray Television and Loop Media go up and down completely randomly.
Pair Corralation between Gray Television and Loop Media
Considering the 90-day investment horizon Gray Television is expected to generate 0.41 times more return on investment than Loop Media. However, Gray Television is 2.44 times less risky than Loop Media. It trades about -0.02 of its potential returns per unit of risk. Loop Media is currently generating about -0.07 per unit of risk. If you would invest 1,031 in Gray Television on August 27, 2024 and sell it today you would lose (594.00) from holding Gray Television or give up 57.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.48% |
| Values | Daily Returns |
Gray Television vs. Loop Media
Performance |
| Timeline |
| Gray Television |
| Loop Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gray Television and Loop Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gray Television and Loop Media
The main advantage of trading using opposite Gray Television and Loop Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gray Television position performs unexpectedly, Loop 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 Loop Media will offset losses from the drop in Loop Media's long position.| Gray Television vs. E W Scripps | Gray Television vs. Saga Communications | Gray Television vs. iHeartMedia Class A | Gray Television vs. Cumulus Media Class |
| Loop Media vs. Acco Brands | Loop Media vs. Lion One Metals | Loop Media vs. Afya | Loop Media vs. Aerofoam Metals |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |