Correlation Between Nexstar Broadcasting and TenX Keane
Can any of the company-specific risk be diversified away by investing in both Nexstar Broadcasting and TenX Keane 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 TenX Keane 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 TenX Keane Acquisition, you can compare the effects of market volatilities on Nexstar Broadcasting and TenX Keane 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 TenX Keane. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Broadcasting and TenX Keane.
Diversification Opportunities for Nexstar Broadcasting and TenX Keane
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nexstar and TenX is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Broadcasting Group and TenX Keane Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TenX Keane Acquisition 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 TenX Keane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TenX Keane Acquisition has no effect on the direction of Nexstar Broadcasting i.e., Nexstar Broadcasting and TenX Keane go up and down completely randomly.
Pair Corralation between Nexstar Broadcasting and TenX Keane
If you would invest (100.00) in TenX Keane Acquisition on August 30, 2024 and sell it today you would earn a total of 100.00 from holding TenX Keane Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Nexstar Broadcasting Group vs. TenX Keane Acquisition
Performance |
| Timeline |
| Nexstar Broadcasting |
| TenX Keane Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nexstar Broadcasting and TenX Keane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Broadcasting and TenX Keane
The main advantage of trading using opposite Nexstar Broadcasting and TenX Keane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Broadcasting position performs unexpectedly, TenX Keane 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 TenX Keane will offset losses from the drop in TenX Keane'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 |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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