Correlation Between SOUTHERN and Nexstar Broadcasting
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By analyzing existing cross correlation between SOUTHERN CALIF EDISON and Nexstar Broadcasting Group, you can compare the effects of market volatilities on SOUTHERN 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 SOUTHERN with a short position of Nexstar Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of SOUTHERN and Nexstar Broadcasting.
Diversification Opportunities for SOUTHERN and Nexstar Broadcasting
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SOUTHERN and Nexstar is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding SOUTHERN CALIF EDISON and Nexstar Broadcasting Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Broadcasting and SOUTHERN 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 SOUTHERN CALIF EDISON 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 SOUTHERN i.e., SOUTHERN and Nexstar Broadcasting go up and down completely randomly.
Pair Corralation between SOUTHERN and Nexstar Broadcasting
Assuming the 90 days trading horizon SOUTHERN CALIF EDISON is expected to generate 27.16 times more return on investment than Nexstar Broadcasting. However, SOUTHERN is 27.16 times more volatile than Nexstar Broadcasting Group. It trades about 0.05 of its potential returns per unit of risk. Nexstar Broadcasting Group is currently generating about 0.02 per unit of risk. If you would invest 10,526 in SOUTHERN CALIF EDISON on September 12, 2024 and sell it today you would earn a total of 18.00 from holding SOUTHERN CALIF EDISON or generate 0.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 58.38% |
| Values | Daily Returns |
SOUTHERN CALIF EDISON vs. Nexstar Broadcasting Group
Performance |
| Timeline |
| SOUTHERN CALIF EDISON |
| Nexstar Broadcasting |
SOUTHERN and Nexstar Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SOUTHERN and Nexstar Broadcasting
The main advantage of trading using opposite SOUTHERN and Nexstar Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SOUTHERN 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.| SOUTHERN vs. MACOM Technology Solutions | SOUTHERN vs. Nexstar Broadcasting Group | SOUTHERN vs. Ryanair Holdings PLC | SOUTHERN vs. ON Semiconductor |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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