Correlation Between Nexstar Media and SLR Investment
Can any of the company-specific risk be diversified away by investing in both Nexstar Media and SLR Investment 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 SLR Investment 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 SLR Investment Corp, you can compare the effects of market volatilities on Nexstar Media and SLR Investment 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 SLR Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexstar Media and SLR Investment.
Diversification Opportunities for Nexstar Media and SLR Investment
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexstar and SLR is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Nexstar Media Group and SLR Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SLR Investment Corp 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 SLR Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SLR Investment Corp has no effect on the direction of Nexstar Media i.e., Nexstar Media and SLR Investment go up and down completely randomly.
Pair Corralation between Nexstar Media and SLR Investment
Assuming the 90 days horizon Nexstar Media Group is expected to under-perform the SLR Investment. In addition to that, Nexstar Media is 1.86 times more volatile than SLR Investment Corp. It trades about -0.12 of its total potential returns per unit of risk. SLR Investment Corp is currently generating about 0.06 per unit of volatility. If you would invest 1,557 in SLR Investment Corp on October 30, 2024 and sell it today you would earn a total of 15.00 from holding SLR Investment Corp or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexstar Media Group vs. SLR Investment Corp
Performance |
| Timeline |
| Nexstar Media Group |
| SLR Investment Corp |
Nexstar Media and SLR Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexstar Media and SLR Investment
The main advantage of trading using opposite Nexstar Media and SLR Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexstar Media position performs unexpectedly, SLR Investment 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 SLR Investment will offset losses from the drop in SLR Investment's long position.| Nexstar Media vs. Indutrade AB | Nexstar Media vs. SOGECLAIR SA INH | Nexstar Media vs. Carsales | Nexstar Media vs. Alaska Air Group |
| SLR Investment vs. TAL Education Group | SLR Investment vs. STRAYER EDUCATION | SLR Investment vs. Perdoceo Education | SLR Investment vs. SCOTT TECHNOLOGY |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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