Correlation Between Nexstar Media and SINGAPORE AIRLINES
Can any of the company-specific risk be diversified away by investing in both Nexstar Media and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES 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 SINGAPORE AIRLINES, you can compare the effects of market volatilities on Nexstar Media and SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and SINGAPORE AIRLINES.
Diversification Opportunities for Nexstar Media and SINGAPORE AIRLINES
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexstar and SINGAPORE is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and SINGAPORE AIRLINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SINGAPORE AIRLINES 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 SINGAPORE AIRLINES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SINGAPORE AIRLINES has no effect on the direction of Nexstar Media i.e., Nexstar Media and SINGAPORE AIRLINES go up and down completely randomly.
Pair Corralation between Nexstar Media and SINGAPORE AIRLINES
Assuming the 90 days horizon Nexstar Media Group is expected to under-perform the SINGAPORE AIRLINES. In addition to that, Nexstar Media is 1.91 times more volatile than SINGAPORE AIRLINES. It trades about -0.13 of its total potential returns per unit of risk. SINGAPORE AIRLINES is currently generating about 0.19 per unit of volatility. If you would invest 448.00 in SINGAPORE AIRLINES on October 12, 2024 and sell it today you would earn a total of 10.00 from holding SINGAPORE AIRLINES or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. SINGAPORE AIRLINES
Performance |
| Timeline |
| Nexstar Media Group |
| SINGAPORE AIRLINES |
Nexstar Media and SINGAPORE AIRLINES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and SINGAPORE AIRLINES
The main advantage of trading using opposite Nexstar Media and SINGAPORE AIRLINES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media position performs unexpectedly, SINGAPORE AIRLINES 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 SINGAPORE AIRLINES will offset losses from the drop in SINGAPORE AIRLINES's long position.| Nexstar Media vs. SINGAPORE AIRLINES | Nexstar Media vs. SQUIRREL MEDIA SA | Nexstar Media vs. Aegean Airlines SA | Nexstar Media vs. Tencent Music Entertainment |
| SINGAPORE AIRLINES vs. OBSERVE MEDICAL ASA | SINGAPORE AIRLINES vs. IMAGIN MEDICAL INC | SINGAPORE AIRLINES vs. PULSION Medical Systems | SINGAPORE AIRLINES vs. Inspire Medical Systems |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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