Correlation Between Nexstar Media and Power Assets
Can any of the company-specific risk be diversified away by investing in both Nexstar Media and Power Assets 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 Power Assets 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 Power Assets Holdings, you can compare the effects of market volatilities on Nexstar Media and Power Assets 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 Power Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and Power Assets.
Diversification Opportunities for Nexstar Media and Power Assets
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexstar and Power is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and Power Assets Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Assets Holdings 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 Power Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Assets Holdings has no effect on the direction of Nexstar Media i.e., Nexstar Media and Power Assets go up and down completely randomly.
Pair Corralation between Nexstar Media and Power Assets
Assuming the 90 days horizon Nexstar Media Group is expected to under-perform the Power Assets. In addition to that, Nexstar Media is 1.45 times more volatile than Power Assets Holdings. It trades about -0.15 of its total potential returns per unit of risk. Power Assets Holdings is currently generating about -0.15 per unit of volatility. If you would invest 660.00 in Power Assets Holdings on October 25, 2024 and sell it today you would lose (20.00) from holding Power Assets Holdings or give up 3.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. Power Assets Holdings
Performance |
| Timeline |
| Nexstar Media Group |
| Power Assets Holdings |
Nexstar Media and Power Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and Power Assets
The main advantage of trading using opposite Nexstar Media and Power Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media position performs unexpectedly, Power Assets 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 Power Assets will offset losses from the drop in Power Assets' long position.| Nexstar Media vs. Micron Technology | Nexstar Media vs. MUTUIONLINE | Nexstar Media vs. ZhongAn Online P | Nexstar Media vs. Entravision Communications |
| Power Assets vs. PennantPark Investment | Power Assets vs. ULTRA CLEAN HLDGS | Power Assets vs. HK Electric Investments | Power Assets vs. PLANT VEDA FOODS |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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