Correlation Between Nexstar Media and RCS MediaGroup
Can any of the company-specific risk be diversified away by investing in both Nexstar Media and RCS MediaGroup 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 RCS MediaGroup 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 RCS MediaGroup SpA, you can compare the effects of market volatilities on Nexstar Media and RCS MediaGroup 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 RCS MediaGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and RCS MediaGroup.
Diversification Opportunities for Nexstar Media and RCS MediaGroup
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexstar and RCS is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and RCS MediaGroup SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCS MediaGroup SpA 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 RCS MediaGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCS MediaGroup SpA has no effect on the direction of Nexstar Media i.e., Nexstar Media and RCS MediaGroup go up and down completely randomly.
Pair Corralation between Nexstar Media and RCS MediaGroup
Assuming the 90 days horizon Nexstar Media Group is expected to under-perform the RCS MediaGroup. In addition to that, Nexstar Media is 1.3 times more volatile than RCS MediaGroup SpA. It trades about -0.05 of its total potential returns per unit of risk. RCS MediaGroup SpA is currently generating about 0.09 per unit of volatility. If you would invest 86.00 in RCS MediaGroup SpA on November 4, 2024 and sell it today you would earn a total of 2.00 from holding RCS MediaGroup SpA or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Nexstar Media Group vs. RCS MediaGroup SpA
Performance |
| Timeline |
| Nexstar Media Group |
| RCS MediaGroup SpA |
Nexstar Media and RCS MediaGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and RCS MediaGroup
The main advantage of trading using opposite Nexstar Media and RCS MediaGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media position performs unexpectedly, RCS MediaGroup 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 RCS MediaGroup will offset losses from the drop in RCS MediaGroup's long position.| Nexstar Media vs. AUST AGRICULTURAL | Nexstar Media vs. AGRICULTBK HADR25 YC | Nexstar Media vs. Sumitomo Mitsui Construction | Nexstar Media vs. OPKO HEALTH |
| RCS MediaGroup vs. MGIC INVESTMENT | RCS MediaGroup vs. WisdomTree Investments | RCS MediaGroup vs. Scottish Mortgage Investment | RCS MediaGroup vs. Addus HomeCare |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |