Correlation Between NH Foods and Townsquare Media
Can any of the company-specific risk be diversified away by investing in both NH Foods and Townsquare 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 NH Foods and Townsquare Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Townsquare Media, you can compare the effects of market volatilities on NH Foods and Townsquare 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 NH Foods with a short position of Townsquare Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Townsquare Media.
Diversification Opportunities for NH Foods and Townsquare Media
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIPMY and Townsquare is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and Townsquare Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Townsquare Media and NH Foods 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 NH Foods Ltd are associated (or correlated) with Townsquare Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Townsquare Media has no effect on the direction of NH Foods i.e., NH Foods and Townsquare Media go up and down completely randomly.
Pair Corralation between NH Foods and Townsquare Media
Assuming the 90 days horizon NH Foods Ltd is expected to generate 0.18 times more return on investment than Townsquare Media. However, NH Foods Ltd is 5.45 times less risky than Townsquare Media. It trades about 0.09 of its potential returns per unit of risk. Townsquare Media is currently generating about 0.0 per unit of risk. If you would invest 1,625 in NH Foods Ltd on September 2, 2024 and sell it today you would earn a total of 75.00 from holding NH Foods Ltd or generate 4.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. Townsquare Media
Performance |
| Timeline |
| NH Foods |
| Townsquare Media |
NH Foods and Townsquare Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Townsquare Media
The main advantage of trading using opposite NH Foods and Townsquare Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods position performs unexpectedly, Townsquare 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 Townsquare Media will offset losses from the drop in Townsquare Media's long position.The idea behind NH Foods Ltd and Townsquare Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Townsquare Media vs. Mirriad Advertising plc | Townsquare Media vs. INEO Tech Corp | Townsquare Media vs. Kidoz Inc | Townsquare Media vs. Marchex |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |