Correlation Between Salem Media and Mediaco Holding
Can any of the company-specific risk be diversified away by investing in both Salem Media and Mediaco Holding 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 Mediaco Holding 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 Mediaco Holding, you can compare the effects of market volatilities on Salem Media and Mediaco Holding 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 Mediaco Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salem Media and Mediaco Holding.
Diversification Opportunities for Salem Media and Mediaco Holding
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Salem and Mediaco is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Salem Media Group and Mediaco Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediaco Holding 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 Mediaco Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediaco Holding has no effect on the direction of Salem Media i.e., Salem Media and Mediaco Holding go up and down completely randomly.
Pair Corralation between Salem Media and Mediaco Holding
If you would invest 98.00 in Salem Media Group on October 23, 2024 and sell it today you would earn a total of 0.00 from holding Salem Media Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Salem Media Group vs. Mediaco Holding
Performance |
| Timeline |
| Salem Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mediaco Holding |
Salem Media and Mediaco Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salem Media and Mediaco Holding
The main advantage of trading using opposite Salem Media and Mediaco Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salem Media position performs unexpectedly, Mediaco Holding 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 Mediaco Holding will offset losses from the drop in Mediaco Holding'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 |
| Mediaco Holding vs. Saga Communications | Mediaco Holding vs. ProSiebenSat1 Media AG | Mediaco Holding vs. Cumulus Media Class | Mediaco Holding vs. Beasley Broadcast 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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