Correlation Between Gray Television and Salem Media
Can any of the company-specific risk be diversified away by investing in both Gray Television 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 Gray Television and Salem 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 Salem Media Group, you can compare the effects of market volatilities on Gray Television 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 Gray Television with a short position of Salem Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gray Television and Salem Media.
Diversification Opportunities for Gray Television and Salem Media
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gray and Salem is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Gray Television 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 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 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 Gray Television i.e., Gray Television and Salem Media go up and down completely randomly.
Pair Corralation between Gray Television and Salem Media
Considering the 90-day investment horizon Gray Television is expected to generate 1.28 times more return on investment than Salem Media. However, Gray Television is 1.28 times more volatile than Salem Media Group. It trades about -0.02 of its potential returns per unit of risk. Salem Media Group is currently generating about -0.03 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 | 31.85% |
| Values | Daily Returns |
Gray Television vs. Salem Media Group
Performance |
| Timeline |
| Gray Television |
| Salem Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gray Television and Salem Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gray Television and Salem Media
The main advantage of trading using opposite Gray Television and Salem Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gray Television 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.| Gray Television vs. E W Scripps | Gray Television vs. Saga Communications | Gray Television vs. iHeartMedia Class A | Gray Television vs. Cumulus Media Class |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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