Correlation Between Glory Star and Townsquare Media

Can any of the company-specific risk be diversified away by investing in both Glory Star 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 Glory Star and Townsquare Media into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Glory Star New and Townsquare Media, you can compare the effects of market volatilities on Glory Star 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 Glory Star with a short position of Townsquare Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glory Star and Townsquare Media.

Diversification Opportunities for Glory Star and Townsquare Media

0.0

Correlation Coefficient

Glory Star  Townsquare Media

Pay attention - limited upside

The 3 months correlation between Glory and Townsquare is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Glory Star New and Townsquare Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Townsquare Media and Glory Star 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 Glory Star New 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 Glory Star i.e., Glory Star and Townsquare Media go up and down completely randomly.

Pair Corralation between Glory Star and Townsquare Media

If you would invest  958.00  in Townsquare Media on September 14, 2024 and sell it today you would earn a total of  59.00  from holding Townsquare Media or generate 6.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Glory Star New  vs.  Townsquare Media

Glory Star New

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glory Star New has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable primary indicators, Glory Star is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Townsquare Media

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Townsquare Media are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Townsquare Media may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Glory Star and Townsquare Media

The main advantage of trading using opposite Glory Star and Townsquare Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glory Star 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.

The idea behind Glory Star New and Townsquare Media pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.