Correlation Between Townsquare Media and Banc Of
Can any of the company-specific risk be diversified away by investing in both Townsquare Media and Banc Of 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 Townsquare Media and Banc Of into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Townsquare Media and Banc of California, you can compare the effects of market volatilities on Townsquare Media and Banc Of 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 Townsquare Media with a short position of Banc Of. Check out your portfolio center. Please also check ongoing floating volatility patterns of Townsquare Media and Banc Of.
Diversification Opportunities for Townsquare Media and Banc Of
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Townsquare and Banc is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Townsquare Media and Banc of California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banc of California and Townsquare 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 Townsquare Media are associated (or correlated) with Banc Of. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banc of California has no effect on the direction of Townsquare Media i.e., Townsquare Media and Banc Of go up and down completely randomly.
Pair Corralation between Townsquare Media and Banc Of
Considering the 90-day investment horizon Townsquare Media is expected to under-perform the Banc Of. In addition to that, Townsquare Media is 3.66 times more volatile than Banc of California. It trades about -0.16 of its total potential returns per unit of risk. Banc of California is currently generating about 0.3 per unit of volatility. If you would invest 2,468 in Banc of California on November 5, 2024 and sell it today you would earn a total of 77.00 from holding Banc of California or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Townsquare Media vs. Banc of California
Performance |
| Timeline |
| Townsquare Media |
| Banc of California |
Townsquare Media and Banc Of Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Townsquare Media and Banc Of
The main advantage of trading using opposite Townsquare Media and Banc Of positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Townsquare Media position performs unexpectedly, Banc Of 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 Banc Of will offset losses from the drop in Banc Of's long position.| Townsquare Media vs. Mirriad Advertising plc | Townsquare Media vs. INEO Tech Corp | Townsquare Media vs. Kidoz Inc | Townsquare Media vs. Marchex |
| Banc Of vs. Axos Financial | Banc Of vs. Byline Bancorp | Banc Of vs. KB Financial Group | Banc Of vs. Nu Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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