Correlation Between Nexstar Media and ASML HOLDING
Can any of the company-specific risk be diversified away by investing in both Nexstar Media and ASML HOLDING 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 ASML HOLDING 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 ASML HOLDING NY, you can compare the effects of market volatilities on Nexstar Media and ASML HOLDING 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 ASML HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and ASML HOLDING.
Diversification Opportunities for Nexstar Media and ASML HOLDING
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nexstar and ASML is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and ASML HOLDING NY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASML HOLDING NY 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 ASML HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASML HOLDING NY has no effect on the direction of Nexstar Media i.e., Nexstar Media and ASML HOLDING go up and down completely randomly.
Pair Corralation between Nexstar Media and ASML HOLDING
Assuming the 90 days horizon Nexstar Media Group is expected to generate 1.92 times more return on investment than ASML HOLDING. However, Nexstar Media is 1.92 times more volatile than ASML HOLDING NY. It trades about 0.16 of its potential returns per unit of risk. ASML HOLDING NY is currently generating about -0.26 per unit of risk. If you would invest 14,461 in Nexstar Media Group on December 11, 2024 and sell it today you would earn a total of 1,414 from holding Nexstar Media Group or generate 9.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. ASML HOLDING NY
Performance |
| Timeline |
| Nexstar Media Group |
| ASML HOLDING NY |
Nexstar Media and ASML HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and ASML HOLDING
The main advantage of trading using opposite Nexstar Media and ASML HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media position performs unexpectedly, ASML HOLDING 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 ASML HOLDING will offset losses from the drop in ASML HOLDING's long position.| Nexstar Media vs. INDOFOOD AGRI RES | Nexstar Media vs. SENECA FOODS A | Nexstar Media vs. UNITED UTILITIES GR | Nexstar Media vs. Suntory Beverage Food |
| ASML HOLDING vs. Yuexiu Transport Infrastructure | ASML HOLDING vs. Liberty Broadband | ASML HOLDING vs. SAFEROADS HLDGS | ASML HOLDING vs. Canadian Utilities Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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