Correlation Between Salem Media and Fonu2
Can any of the company-specific risk be diversified away by investing in both Salem Media and Fonu2 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 Salem Media and Fonu2 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salem Media Group and Fonu2 Inc, you can compare the effects of market volatilities on Salem Media and Fonu2 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 Salem Media with a short position of Fonu2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salem Media and Fonu2.
Diversification Opportunities for Salem Media and Fonu2
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Salem and Fonu2 is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Salem Media Group and Fonu2 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonu2 Inc and Salem 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 Salem Media Group are associated (or correlated) with Fonu2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonu2 Inc has no effect on the direction of Salem Media i.e., Salem Media and Fonu2 go up and down completely randomly.
Pair Corralation between Salem Media and Fonu2
If you would invest 0.00 in Fonu2 Inc on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Fonu2 Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.88% |
| Values | Daily Returns |
Salem Media Group vs. Fonu2 Inc
Performance |
| Timeline |
| Salem Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Fonu2 Inc |
Salem Media and Fonu2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salem Media and Fonu2
The main advantage of trading using opposite Salem Media and Fonu2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salem Media position performs unexpectedly, Fonu2 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 Fonu2 will offset losses from the drop in Fonu2's long position.| Salem Media vs. Mediaco Holding | Salem Media vs. Saga Communications | Salem Media vs. ProSiebenSat1 Media AG | Salem Media vs. Cumulus Media Class |
| Fonu2 vs. Television Broadcasts | Fonu2 vs. Fubotv Inc | Fonu2 vs. Cumulus Media Class | Fonu2 vs. E W Scripps |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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