Correlation Between Nexstar Broadcasting and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Nexstar Broadcasting and Sligro Food 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 Sligro Food 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 Sligro Food Group, you can compare the effects of market volatilities on Nexstar Broadcasting and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Broadcasting and Sligro Food.
Diversification Opportunities for Nexstar Broadcasting and Sligro Food
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Nexstar and Sligro is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Broadcasting Group and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Nexstar Broadcasting i.e., Nexstar Broadcasting and Sligro Food go up and down completely randomly.
Pair Corralation between Nexstar Broadcasting and Sligro Food
Given the investment horizon of 90 days Nexstar Broadcasting Group is expected to generate 1.22 times more return on investment than Sligro Food. However, Nexstar Broadcasting is 1.22 times more volatile than Sligro Food Group. It trades about 0.0 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.21 per unit of risk. If you would invest 16,865 in Nexstar Broadcasting Group on August 23, 2024 and sell it today you would lose (182.00) from holding Nexstar Broadcasting Group or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nexstar Broadcasting Group vs. Sligro Food Group
Performance |
| Timeline |
| Nexstar Broadcasting |
| Sligro Food Group |
Nexstar Broadcasting and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Broadcasting and Sligro Food
The main advantage of trading using opposite Nexstar Broadcasting and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Broadcasting position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food'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 |
| Sligro Food vs. Stepan Company | Sligro Food vs. Academy Sports Outdoors | Sligro Food vs. Delek Logistics Partners | Sligro Food vs. Playstudios |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |