Correlation Between Townsquare Media and Ihuman
Can any of the company-specific risk be diversified away by investing in both Townsquare Media and Ihuman 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 Ihuman into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Townsquare Media and Ihuman Inc, you can compare the effects of market volatilities on Townsquare Media and Ihuman 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 Ihuman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Townsquare Media and Ihuman.
Diversification Opportunities for Townsquare Media and Ihuman
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Townsquare and Ihuman is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Townsquare Media and Ihuman Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihuman Inc 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 Ihuman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihuman Inc has no effect on the direction of Townsquare Media i.e., Townsquare Media and Ihuman go up and down completely randomly.
Pair Corralation between Townsquare Media and Ihuman
Considering the 90-day investment horizon Townsquare Media is expected to generate 0.67 times more return on investment than Ihuman. However, Townsquare Media is 1.5 times less risky than Ihuman. It trades about 0.02 of its potential returns per unit of risk. Ihuman Inc is currently generating about -0.03 per unit of risk. If you would invest 957.00 in Townsquare Media on September 2, 2024 and sell it today you would earn a total of 53.00 from holding Townsquare Media or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Townsquare Media vs. Ihuman Inc
Performance |
| Timeline |
| Townsquare Media |
| Ihuman Inc |
Townsquare Media and Ihuman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Townsquare Media and Ihuman
The main advantage of trading using opposite Townsquare Media and Ihuman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Townsquare Media position performs unexpectedly, Ihuman 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 Ihuman will offset losses from the drop in Ihuman's long position.| Townsquare Media vs. Mirriad Advertising plc | Townsquare Media vs. INEO Tech Corp | Townsquare Media vs. Kidoz Inc | Townsquare Media vs. Marchex |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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