Correlation Between Nexstar Media and VIVA WINE
Can any of the company-specific risk be diversified away by investing in both Nexstar Media and VIVA WINE 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 VIVA WINE 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 VIVA WINE GROUP, you can compare the effects of market volatilities on Nexstar Media and VIVA WINE 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 VIVA WINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and VIVA WINE.
Diversification Opportunities for Nexstar Media and VIVA WINE
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nexstar and VIVA is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and VIVA WINE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIVA WINE GROUP 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 VIVA WINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIVA WINE GROUP has no effect on the direction of Nexstar Media i.e., Nexstar Media and VIVA WINE go up and down completely randomly.
Pair Corralation between Nexstar Media and VIVA WINE
Assuming the 90 days horizon Nexstar Media Group is expected to under-perform the VIVA WINE. In addition to that, Nexstar Media is 1.23 times more volatile than VIVA WINE GROUP. It trades about -0.14 of its total potential returns per unit of risk. VIVA WINE GROUP is currently generating about -0.16 per unit of volatility. If you would invest 333.00 in VIVA WINE GROUP on October 19, 2024 and sell it today you would lose (13.00) from holding VIVA WINE GROUP or give up 3.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Nexstar Media Group vs. VIVA WINE GROUP
Performance |
| Timeline |
| Nexstar Media Group |
| VIVA WINE GROUP |
Nexstar Media and VIVA WINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and VIVA WINE
The main advantage of trading using opposite Nexstar Media and VIVA WINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media position performs unexpectedly, VIVA WINE 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 VIVA WINE will offset losses from the drop in VIVA WINE's long position.| Nexstar Media vs. Endeavour Mining PLC | Nexstar Media vs. Perseus Mining Limited | Nexstar Media vs. SAFEROADS HLDGS | Nexstar Media vs. Monument Mining Limited |
| VIVA WINE vs. PENN Entertainment | VIVA WINE vs. WILLIS LEASE FIN | VIVA WINE vs. Townsquare Media | VIVA WINE vs. Nexstar Media Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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