Correlation Between Nexstar Media and Atrium Ljungberg
Can any of the company-specific risk be diversified away by investing in both Nexstar Media and Atrium Ljungberg 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 Atrium Ljungberg 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 Atrium Ljungberg AB, you can compare the effects of market volatilities on Nexstar Media and Atrium Ljungberg 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 Atrium Ljungberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and Atrium Ljungberg.
Diversification Opportunities for Nexstar Media and Atrium Ljungberg
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Nexstar and Atrium is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and Atrium Ljungberg AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atrium Ljungberg 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 Atrium Ljungberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atrium Ljungberg has no effect on the direction of Nexstar Media i.e., Nexstar Media and Atrium Ljungberg go up and down completely randomly.
Pair Corralation between Nexstar Media and Atrium Ljungberg
Assuming the 90 days horizon Nexstar Media Group is expected to under-perform the Atrium Ljungberg. But the stock apears to be less risky and, when comparing its historical volatility, Nexstar Media Group is 1.15 times less risky than Atrium Ljungberg. The stock trades about -0.01 of its potential returns per unit of risk. The Atrium Ljungberg AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 956.00 in Atrium Ljungberg AB on October 28, 2024 and sell it today you would earn a total of 772.00 from holding Atrium Ljungberg AB or generate 80.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. Atrium Ljungberg AB
Performance |
| Timeline |
| Nexstar Media Group |
| Atrium Ljungberg |
Nexstar Media and Atrium Ljungberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and Atrium Ljungberg
The main advantage of trading using opposite Nexstar Media and Atrium Ljungberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media position performs unexpectedly, Atrium Ljungberg 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 Atrium Ljungberg will offset losses from the drop in Atrium Ljungberg's long position.| Nexstar Media vs. MagnaChip Semiconductor Corp | Nexstar Media vs. BANK OF CHINA | Nexstar Media vs. Magnachip Semiconductor | Nexstar Media vs. Meta Financial Group |
| Atrium Ljungberg vs. Suntory Beverage Food | Atrium Ljungberg vs. PKSHA TECHNOLOGY INC | Atrium Ljungberg vs. Digilife Technologies Limited | Atrium Ljungberg vs. Addtech AB |
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.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |