Correlation Between Nexstar Media and Atos SE
Can any of the company-specific risk be diversified away by investing in both Nexstar Media and Atos SE 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 Atos SE 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 Atos SE, you can compare the effects of market volatilities on Nexstar Media and Atos SE 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 Atos SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and Atos SE.
Diversification Opportunities for Nexstar Media and Atos SE
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Nexstar and Atos is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and Atos SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atos SE 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 Atos SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atos SE has no effect on the direction of Nexstar Media i.e., Nexstar Media and Atos SE go up and down completely randomly.
Pair Corralation between Nexstar Media and Atos SE
Assuming the 90 days horizon Nexstar Media Group is expected to generate 0.06 times more return on investment than Atos SE. However, Nexstar Media Group is 17.08 times less risky than Atos SE. It trades about -0.14 of its potential returns per unit of risk. Atos SE is currently generating about -0.24 per unit of risk. If you would invest 16,110 in Nexstar Media Group on October 28, 2024 and sell it today you would lose (1,290) from holding Nexstar Media Group or give up 8.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. Atos SE
Performance |
| Timeline |
| Nexstar Media Group |
| Atos SE |
Nexstar Media and Atos SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and Atos SE
The main advantage of trading using opposite Nexstar Media and Atos SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media position performs unexpectedly, Atos SE 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 Atos SE will offset losses from the drop in Atos SE'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 |
| Atos SE vs. Accenture plc | Atos SE vs. International Business Machines | Atos SE vs. International Business Machines | Atos SE vs. Infosys 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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