Correlation Between General Mills and Townsquare Media
Can any of the company-specific risk be diversified away by investing in both General Mills and Townsquare 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 General Mills and Townsquare Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Mills and Townsquare Media, you can compare the effects of market volatilities on General Mills and Townsquare 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 General Mills with a short position of Townsquare Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Mills and Townsquare Media.
Diversification Opportunities for General Mills and Townsquare Media
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between General and Townsquare is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding General Mills and Townsquare Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Townsquare Media and General Mills 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 General Mills are associated (or correlated) with Townsquare Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Townsquare Media has no effect on the direction of General Mills i.e., General Mills and Townsquare Media go up and down completely randomly.
Pair Corralation between General Mills and Townsquare Media
Assuming the 90 days trading horizon General Mills is expected to generate 0.61 times more return on investment than Townsquare Media. However, General Mills is 1.63 times less risky than Townsquare Media. It trades about 0.15 of its potential returns per unit of risk. Townsquare Media is currently generating about -0.03 per unit of risk. If you would invest 7,878 in General Mills on October 20, 2024 and sell it today you would earn a total of 1,098 from holding General Mills or generate 13.94% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
General Mills vs. Townsquare Media
Performance |
Timeline |
General Mills |
Townsquare Media |
General Mills and Townsquare Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with General Mills and Townsquare Media
The main advantage of trading using opposite General Mills and Townsquare Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Mills position performs unexpectedly, Townsquare 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 Townsquare Media will offset losses from the drop in Townsquare Media's long position.General Mills vs. Casio Computer CoLtd | ||
General Mills vs. Align Technology | ||
General Mills vs. Take Two Interactive Software | ||
General Mills vs. Micron Technology |
Townsquare Media vs. DICKS Sporting Goods | ||
Townsquare Media vs. Darden Restaurants | ||
Townsquare Media vs. SOEDER SPORTFISKE AB | ||
Townsquare Media vs. BJs Restaurants |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |