Correlation Between Gray Television and Anterix
Can any of the company-specific risk be diversified away by investing in both Gray Television and Anterix 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 Anterix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gray Television and Anterix, you can compare the effects of market volatilities on Gray Television and Anterix 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 Anterix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gray Television and Anterix.
Diversification Opportunities for Gray Television and Anterix
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gray and Anterix is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gray Television and Anterix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anterix 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 Anterix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anterix has no effect on the direction of Gray Television i.e., Gray Television and Anterix go up and down completely randomly.
Pair Corralation between Gray Television and Anterix
Given the investment horizon of 90 days Gray Television is expected to generate 5.46 times more return on investment than Anterix. However, Gray Television is 5.46 times more volatile than Anterix. It trades about 0.03 of its potential returns per unit of risk. Anterix is currently generating about 0.0 per unit of risk. If you would invest 781.00 in Gray Television on August 28, 2024 and sell it today you would lose (54.00) from holding Gray Television or give up 6.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gray Television vs. Anterix
Performance |
| Timeline |
| Gray Television |
| Anterix |
Gray Television and Anterix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gray Television and Anterix
The main advantage of trading using opposite Gray Television and Anterix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gray Television position performs unexpectedly, Anterix 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 Anterix will offset losses from the drop in Anterix's long position.| Gray Television vs. Qualys Inc | Gray Television vs. Sapiens International | Gray Television vs. NetSol Technologies | Gray Television vs. Dennys Corp |
| Anterix vs. Shenandoah Telecommunications Co | Anterix vs. Liberty Broadband Corp | Anterix vs. Ooma Inc | Anterix vs. IDT Corporation |
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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