Correlation Between Mediaco Holding and E W
Can any of the company-specific risk be diversified away by investing in both Mediaco Holding and E W 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 Mediaco Holding and E W into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mediaco Holding and E W Scripps, you can compare the effects of market volatilities on Mediaco Holding and E W 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 Mediaco Holding with a short position of E W. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mediaco Holding and E W.
Diversification Opportunities for Mediaco Holding and E W
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mediaco and SSP is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Mediaco Holding and E W Scripps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E W Scripps and Mediaco Holding 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 Mediaco Holding are associated (or correlated) with E W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E W Scripps has no effect on the direction of Mediaco Holding i.e., Mediaco Holding and E W go up and down completely randomly.
Pair Corralation between Mediaco Holding and E W
Given the investment horizon of 90 days Mediaco Holding is expected to generate 2.2 times more return on investment than E W. However, Mediaco Holding is 2.2 times more volatile than E W Scripps. It trades about 0.05 of its potential returns per unit of risk. E W Scripps is currently generating about -0.03 per unit of risk. If you would invest 112.00 in Mediaco Holding on August 24, 2024 and sell it today you would earn a total of 20.00 from holding Mediaco Holding or generate 17.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mediaco Holding vs. E W Scripps
Performance |
| Timeline |
| Mediaco Holding |
| E W Scripps |
Mediaco Holding and E W Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mediaco Holding and E W
The main advantage of trading using opposite Mediaco Holding and E W positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mediaco Holding position performs unexpectedly, E W 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 E W will offset losses from the drop in E W's long position.| Mediaco Holding vs. E W Scripps | Mediaco Holding vs. Saga Communications | Mediaco Holding vs. iHeartMedia Class A | Mediaco Holding vs. Cumulus Media Class |
| E W vs. Saga Communications | E W vs. iHeartMedia Class A | E W vs. Cumulus Media Class | E W vs. Beasley Broadcast Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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