Correlation Between NYSE Composite and Cumulus Media
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Cumulus Media 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 NYSE Composite and Cumulus Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Cumulus Media Class, you can compare the effects of market volatilities on NYSE Composite and Cumulus Media 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 NYSE Composite with a short position of Cumulus Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Cumulus Media.
Diversification Opportunities for NYSE Composite and Cumulus Media
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NYSE and Cumulus is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Cumulus Media Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumulus Media Class and NYSE Composite 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 NYSE Composite are associated (or correlated) with Cumulus Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumulus Media Class has no effect on the direction of NYSE Composite i.e., NYSE Composite and Cumulus Media go up and down completely randomly.
Pair Corralation between NYSE Composite and Cumulus Media
Assuming the 90 days trading horizon NYSE Composite is expected to generate 0.13 times more return on investment than Cumulus Media. However, NYSE Composite is 7.49 times less risky than Cumulus Media. It trades about 0.12 of its potential returns per unit of risk. Cumulus Media Class is currently generating about -0.24 per unit of risk. If you would invest 1,929,223 in NYSE Composite on August 30, 2024 and sell it today you would earn a total of 91,759 from holding NYSE Composite or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Cumulus Media Class
Performance |
| Timeline |
NYSE Composite and Cumulus Media Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Cumulus Media Class
Pair trading matchups for Cumulus Media
Pair Trading with NYSE Composite and Cumulus Media
The main advantage of trading using opposite NYSE Composite and Cumulus Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Cumulus Media 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 Cumulus Media will offset losses from the drop in Cumulus Media's long position.| NYSE Composite vs. Nextplat Corp | NYSE Composite vs. Qualys Inc | NYSE Composite vs. Cadence Design Systems | NYSE Composite vs. Asure Software |
| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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