Correlation Between Sea and Salem Media
Can any of the company-specific risk be diversified away by investing in both Sea and Salem 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 Sea and Salem Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea and Salem Media Group, you can compare the effects of market volatilities on Sea and Salem 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 Sea with a short position of Salem Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea and Salem Media.
Diversification Opportunities for Sea and Salem Media
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sea and Salem is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Sea and Salem Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salem Media Group and Sea 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 Sea are associated (or correlated) with Salem Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salem Media Group has no effect on the direction of Sea i.e., Sea and Salem Media go up and down completely randomly.
Pair Corralation between Sea and Salem Media
If you would invest 9,926 in Sea on August 28, 2024 and sell it today you would earn a total of 1,474 from holding Sea or generate 14.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Sea vs. Salem Media Group
Performance |
| Timeline |
| Sea |
| Salem Media Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sea and Salem Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea and Salem Media
The main advantage of trading using opposite Sea and Salem Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea position performs unexpectedly, Salem 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 Salem Media will offset losses from the drop in Salem Media's long position.| Sea vs. Atari SA | Sea vs. Victory Square Technologies | Sea vs. Motorsport Gaming Us | Sea vs. Alpha Esports Tech |
| Salem Media vs. Mediaco Holding | Salem Media vs. Saga Communications | Salem Media vs. ProSiebenSat1 Media AG | Salem Media vs. Cumulus Media Class |
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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