Correlation Between Nexstar Media and Aya Gold
Can any of the company-specific risk be diversified away by investing in both Nexstar Media and Aya Gold 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 Media and Aya Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexstar Media Group and Aya Gold Silver, you can compare the effects of market volatilities on Nexstar Media and Aya Gold 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 Media with a short position of Aya Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and Aya Gold.
Diversification Opportunities for Nexstar Media and Aya Gold
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nexstar and Aya is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and Aya Gold Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aya Gold Silver and Nexstar Media 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 Media Group are associated (or correlated) with Aya Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aya Gold Silver has no effect on the direction of Nexstar Media i.e., Nexstar Media and Aya Gold go up and down completely randomly.
Pair Corralation between Nexstar Media and Aya Gold
Assuming the 90 days horizon Nexstar Media Group is expected to generate 0.46 times more return on investment than Aya Gold. However, Nexstar Media Group is 2.15 times less risky than Aya Gold. It trades about -0.09 of its potential returns per unit of risk. Aya Gold Silver is currently generating about -0.35 per unit of risk. If you would invest 15,430 in Nexstar Media Group on October 13, 2024 and sell it today you would lose (285.00) from holding Nexstar Media Group or give up 1.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. Aya Gold Silver
Performance |
| Timeline |
| Nexstar Media Group |
| Aya Gold Silver |
Nexstar Media and Aya Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and Aya Gold
The main advantage of trading using opposite Nexstar Media and Aya Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media position performs unexpectedly, Aya Gold 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 Aya Gold will offset losses from the drop in Aya Gold's long position.| Nexstar Media vs. ecotel communication ag | Nexstar Media vs. CREO MEDICAL GRP | Nexstar Media vs. Charter Communications | Nexstar Media vs. United Utilities Group |
| Aya Gold vs. Tsingtao Brewery | Aya Gold vs. MOLSON RS BEVERAGE | Aya Gold vs. Nexstar Media Group | Aya Gold vs. CNVISION MEDIA |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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