Correlation Between Loop Media and Gray Television
Can any of the company-specific risk be diversified away by investing in both Loop Media and Gray Television 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 Loop Media and Gray Television into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loop Media and Gray Television, you can compare the effects of market volatilities on Loop Media and Gray Television 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 Loop Media with a short position of Gray Television. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loop Media and Gray Television.
Diversification Opportunities for Loop Media and Gray Television
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Loop and Gray is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Loop Media and Gray Television in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gray Television and Loop Media 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 Loop Media are associated (or correlated) with Gray Television. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gray Television has no effect on the direction of Loop Media i.e., Loop Media and Gray Television go up and down completely randomly.
Pair Corralation between Loop Media and Gray Television
Given the investment horizon of 90 days Loop Media is expected to under-perform the Gray Television. In addition to that, Loop Media is 3.7 times more volatile than Gray Television. It trades about -0.08 of its total potential returns per unit of risk. Gray Television is currently generating about -0.02 per unit of volatility. If you would invest 547.00 in Gray Television on August 24, 2024 and sell it today you would lose (111.00) from holding Gray Television or give up 20.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 44.0% |
| Values | Daily Returns |
Loop Media vs. Gray Television
Performance |
| Timeline |
| Loop Media |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gray Television |
Loop Media and Gray Television Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loop Media and Gray Television
The main advantage of trading using opposite Loop Media and Gray Television positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loop Media position performs unexpectedly, Gray Television 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 Gray Television will offset losses from the drop in Gray Television's long position.| Loop Media vs. Chemours Co | Loop Media vs. Olympic Steel | Loop Media vs. Sonida Senior Living | Loop Media vs. Eldorado Gold Corp |
| Gray Television vs. E W Scripps | Gray Television vs. Saga Communications | Gray Television vs. iHeartMedia Class A | Gray Television 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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