Correlation Between Nexstar Broadcasting and ESGEN Acquisition
Can any of the company-specific risk be diversified away by investing in both Nexstar Broadcasting and ESGEN Acquisition 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 Nexstar Broadcasting and ESGEN Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexstar Broadcasting Group and ESGEN Acquisition Corp, you can compare the effects of market volatilities on Nexstar Broadcasting and ESGEN Acquisition 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 Nexstar Broadcasting with a short position of ESGEN Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Broadcasting and ESGEN Acquisition.
Diversification Opportunities for Nexstar Broadcasting and ESGEN Acquisition
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nexstar and ESGEN is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Broadcasting Group and ESGEN Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ESGEN Acquisition Corp and Nexstar Broadcasting 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 Nexstar Broadcasting Group are associated (or correlated) with ESGEN Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ESGEN Acquisition Corp has no effect on the direction of Nexstar Broadcasting i.e., Nexstar Broadcasting and ESGEN Acquisition go up and down completely randomly.
Pair Corralation between Nexstar Broadcasting and ESGEN Acquisition
If you would invest 15,976 in Nexstar Broadcasting Group on September 1, 2024 and sell it today you would earn a total of 1,083 from holding Nexstar Broadcasting Group or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Nexstar Broadcasting Group vs. ESGEN Acquisition Corp
Performance |
| Timeline |
| Nexstar Broadcasting |
| ESGEN Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nexstar Broadcasting and ESGEN Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Broadcasting and ESGEN Acquisition
The main advantage of trading using opposite Nexstar Broadcasting and ESGEN Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Broadcasting position performs unexpectedly, ESGEN Acquisition 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 ESGEN Acquisition will offset losses from the drop in ESGEN Acquisition's long position.| Nexstar Broadcasting vs. News Corp B | Nexstar Broadcasting vs. Fox Corp Class | Nexstar Broadcasting vs. Liberty Media | Nexstar Broadcasting vs. AMC Networks |
| ESGEN Acquisition vs. Femasys | ESGEN Acquisition vs. Postal Realty Trust | ESGEN Acquisition vs. Nexstar Broadcasting Group | ESGEN Acquisition vs. Sun Country Airlines |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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