Correlation Between Umpqua Holdings and Nexstar Broadcasting
Can any of the company-specific risk be diversified away by investing in both Umpqua Holdings and Nexstar Broadcasting 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 Umpqua Holdings and Nexstar Broadcasting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Umpqua Holdings and Nexstar Broadcasting Group, you can compare the effects of market volatilities on Umpqua Holdings and Nexstar Broadcasting 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 Umpqua Holdings with a short position of Nexstar Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Umpqua Holdings and Nexstar Broadcasting.
Diversification Opportunities for Umpqua Holdings and Nexstar Broadcasting
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Umpqua and Nexstar is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Umpqua Holdings and Nexstar Broadcasting Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Broadcasting and Umpqua Holdings 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 Umpqua Holdings are associated (or correlated) with Nexstar Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexstar Broadcasting has no effect on the direction of Umpqua Holdings i.e., Umpqua Holdings and Nexstar Broadcasting go up and down completely randomly.
Pair Corralation between Umpqua Holdings and Nexstar Broadcasting
If you would invest 14,504 in Nexstar Broadcasting Group on September 14, 2024 and sell it today you would earn a total of 1,956 from holding Nexstar Broadcasting Group or generate 13.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.37% |
| Values | Daily Returns |
Umpqua Holdings vs. Nexstar Broadcasting Group
Performance |
| Timeline |
| Umpqua Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nexstar Broadcasting |
Umpqua Holdings and Nexstar Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Umpqua Holdings and Nexstar Broadcasting
The main advantage of trading using opposite Umpqua Holdings and Nexstar Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Umpqua Holdings position performs unexpectedly, Nexstar Broadcasting 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 Nexstar Broadcasting will offset losses from the drop in Nexstar Broadcasting's long position.| Umpqua Holdings vs. Nexstar Broadcasting Group | Umpqua Holdings vs. Ihuman Inc | Umpqua Holdings vs. American Airlines Group | Umpqua Holdings vs. Saia Inc |
| Nexstar Broadcasting vs. News Corp B | Nexstar Broadcasting vs. Fox Corp Class | Nexstar Broadcasting vs. Liberty Media | Nexstar Broadcasting vs. AMC Networks |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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